Archive for the ‘American Economic Association’ Category

Updated Estimates of Hispanic-White Wage Gaps for Men and Women

January 9, 2014 Comments off

Updated Estimates of Hispanic-White Wage Gaps for Men and Women (PDF)
Source: American Economic Association

We incorporate controls for cost of living in updated estimates of Hispanic-white wage gaps for men and women using the National Longitudinal Survey of Youth 1997 (NLSY97). Conditional on pre-market skills (i.e., years of education and AFQT score) and cost of living, Hispanic men earn significantly lower hourly wages than non-Hispanic white men. The gap is concentrated among men with relatively low levels of education—high school degree or less. Conditional on pre-market skills, Hispanic women earn significantly higher wages than non-Hispanic white women, but the difference disappears after controlling for cost of living. We also show that non-immigrant Hispanics in the NLSY97 are rather representative of non-immigrant Hispanics in the U.S. overall (measured with the larger American Community Survey). However, immigrant Hispanics in the NLSY97 have higher levels of education and wages than the immigrant Hispanics in the ACS, even after restricting to those ACS respondents who have been in the U.S. since 1997. Researchers should take this limitation into account when extrapolating results for Hispanic immigrants in the NLSY97 to the Hispanic population as a whole.

Why Do High-Tech Workers Earn More in Houston Than Hyderabad?

January 10, 2013 Comments off

Why Do High-Tech Workers Earn More in Houston Than Hyderabad? (PDF)

Source: American Economic Association

Why do Indian software workers employed by U.S. firms earn more in the U.S. than in India? There are several possibilities, among which is the pure effect of location on workers’ economic product. This study seeks to isolate the location effect from other effects in a single setting via a natural experiment: a randomized allocation of temporary U.S. visas among one group of Indian software programmers. In this setting, outputs are close to perfectly tradable, workers in the U.S. and India are observably and unobservably identical in expectation, effects like Baumol’s cost disease and cost-of-living compensating differentials are less relevant, and some of the plausible effects of place on productivity (such as access to technology) are identical for both groups. The large majority of the earnings gap remains, suggesting that these workers are several times more economically productive solely due to working in the U.S. rather than in India. This effect is measured for a single firm and external validity is circumscribed. Further study of the effect of location on economic product has implications for the economic gains to migration, trade, and technology transfer.

Ten Years and Beyond: Economists Answer NSF’s Call for Long-Term Research Agendas (Compendium)

October 8, 2011 Comments off

Ten Years and Beyond: Economists Answer NSF’s Call for Long-Term Research Agendas (Compendium)
Source: American Economic Association (via SSRN)

This is a compendium of fifty-four papers written by distinguished economists in response to an invitation by the National Science Foundation’s Directorate for the Social, Behavioral and Economic Sciences (NSF/SBE) to economists and relevant research communities in August 2010 to write white papers that describe grand challenge questions in their sciences that transcend near-term funding cycles and are “likely to drive next generation research in the social, behavioral, and economic sciences.” These papers offer a number of exciting and at times provocative ideas about future research agendas in economics. The papers could also generate compelling ideas for infrastructure projects, new methodologies and important research topics.

American Economic Review Celebrates 100 Years of Publishing

April 13, 2011 Comments off

American Economic Review Celebrates 100 Years of Publishing (PDF)
Source: American Economic Association

To commemorate the 100th anniversary, the American Economic Review centenary issue, edited by Robert A. Moffitt of Johns Hopkins University, will be published in February 2011. The special edition will include:

  • A paper on the 20 most important articles from the AER’s first 100 years of publishing. This article was written by Kenneth J. Arrow, B. Douglas Bernheim, Martin S. Feldstein, Daniel L. McFadden, James M. Poterba, and Robert M. Solow;
  • An essay on the history of the AER by Robert A. Margo;
  • A reprint of the lead article in the inaugural issue of the AER, “Some Unsettled Problems of Irrigation,” by Katharine Coman, who examined the common property resource problem as applied to water in the Western United States.

Current scholars working on similar problems provide three further articles:

  • “Reflections on ‘Some Unsettled Problems of Irrigation,’” by Elinor Ostrom;
  • “Institutional Path Dependence in Climate Adaptation: Coman’s ‘Some Unsettled Problems of Irrigation,’” by Gary D. Libecap; and
  • “The Problem of the Commons: Still Unsettled after 100 Years,” by Robert N. Stavins.

The top 20 articles, as well as the featured articles mentioned above, are available to the public, free of charge, at The February issue will also contain 11 regular articles and shorter papers.