Global Supply Chains and Wage Inequality

By Arnaud Costinot, Jonathan Vogel, and Su Wang

American Economic Review, May 2012

A salient feature of globalization in recent decades is the emergence of "global supply chains" in which different countries specialize in different stages of a sequential production process. In Costinot, Vogel and Wang (2011) (CVW hereafter), we have dev...

The Information-Technology Revolution and the Stock Market

By Jeremy Greenwood and Boyan Jovanovic

American Economic Review, May 1999

Matching in Networks with Bilateral Contracts

By John William Hatfield and Scott Duke Kominers

American Economic Journal: Microeconomics, February 2012

We introduce a model in which firms trade goods via bilateral contracts which specify a buyer, a seller, and the terms of the exchange. This setting subsumes (many-to-many) matching with contracts, as well as supply chain matching. When firms' relationshi...

Business Groups in Emerging Markets: Paragons or Parasites?

By Tarun Khanna and Yishay Yafeh

Journal of Economic Literature, June 2007

Diversified business groups, consisting of legally independent firms operating across diverse industries, are ubiquitous in emerging markets. Groups around the world share certain attributes but also vary substantially in structure, ownership, and other...

Ready for Boarding? The Effects of a Boarding School for Disadvantaged Students

By Luc Behaghel, Clément de Chaisemartin, and Marc Gurgand

American Economic Journal: Applied Economics, January 2017

Boarding schools substitute school to home, but little is known on the effects this substitution produces on students. We present results of an experiment in which seats in a boarding school for disadvantaged students were randomly allocated. Boarders enj...

Forces Shaping Hours Worked in the OECD, 1960-2004

By Cara McDaniel

American Economic Journal: Macroeconomics, October 2011

The goal of this paper is to examine the role of taxes and productivity growth as forces influencing market hours. To achieve this goal, the paper considers a calibrated growth model extended to include home production and subsistence consumption, both of...

Instrumental Variables and the Search for Identification: From Supply and Demand to Natural Experiments

[Symposium: Econometric Tools]

By Joshua D. Angrist and Alan B. Krueger

Journal of Economic Perspectives, Fall 2001

Instrumental variables was first used in the 1920s to estimate supply and demand elasticities and later to correct for measurement error in single equation models. Recently, instrumental variables have been widely used to reduce bias from omitted variable...

The Young Person's Guide to Writing Economic Theory

By William Thomson

Journal of Economic Literature, March 1999

I formulate recommendations to young authors for writing economic theory well. I state general principles of good writing, and emphasize the role of the different components of a paper and the importance of the structure of one's work being clear. I expla...

Schooling Data, Technological Diffusion, and the Neoclassical Model

By Angel de la Fuente and Rafael Domenech

American Economic Review, May 2001

The Expanding Gender Earnings Gap: Evidence from the LEHD-2000 Census

By Claudia Goldin, Sari Pekkala Kerr, Claudia Olivetti, and Erling Barth

American Economic Review, May 2017

The gender earnings gap is an expanding statistic over the lifecycle. We use the LEHD Census 2000 to understand the roles of industry, occupation, and establishment 14 years after leaving school. The gap for college graduates 26 to 39 years old expands by...

Composition and Aggregate Real Wage Growth

By Mary C. Daly and Bart Hobijn

American Economic Review, May 2017

Aggregate real wages exhibit less procyclicality than most macroeconomic models predict. We use 35 years of Current Population Survey data to confirm that the puzzling behavior of wages largely owes to changes in the composition of the employed over the b...

The Girl Next Door: The Effect of Opposite Gender Friends on High School Achievement

By Andrew J. Hill

American Economic Journal: Applied Economics, July 2015

This paper finds that a student's share of opposite gender school friends negatively affects high school GPA. It uses the gender composition of schoolmates in an individual's neighborhood as an instrument for the gender composition of an individual's self...

Real Wage Index Numbers

By John Pencavel

American Economic Review, May 2011

Real wage index numbers have been used to measure movements in the standard of living of the typical worker. This paper describes some of these indicators for the United States and England. A new real wage index is proposed that resembles the sliding scal...

Go Figure: The Strategy of Nonliteral Speech

By Hugo M. Mialon and Sue H. Mialon

American Economic Journal: Microeconomics, May 2013

We develop a model of figurative or indirect speech, which may convey a meaning that differs from its literal meaning. The model yields analytical conditions for speech to be figurative in equilibrium and delivers a number of comparative statics results. ...

The Price of Experience

By Hyeok Jeong, Yong Kim, and Iourii Manovskii

American Economic Review, February 2015

We identify a key role of factor supply, driven by demographic changes, in shaping several empirical regularities that are a focus of active research in macro and labor economics. In particular, demographic changes alone can account for the large movement...

Disclosure and Legal Advice

By Yeon-Koo Che and Sergei Severinov

American Economic Journal: Microeconomics, May 2017

This paper examines how the advice that lawyers provide to their clients affects the disclosure of evidence and the outcome of adjudication, and how the adjudicator should allocate the burden of proof in light of these effects. Despite lawyers' expertise ...

Time-to-Degree for the Economics Ph.D. Class of 2001-2002

By Wendy A. Stock and John J. Siegfried

American Economic Review, May 2006

History Matters: The Long-Term Impact of Colonial Public Investments in French West Africa

By Elise Huillery

American Economic Journal: Applied Economics, April 2009

To what extent do colonial public investments continue to influence current regional inequalities in French-speaking West Africa? Using a new database and the spatial discontinuities of colonial investment policy, this paper gives evidence that early c...

Why Is Russian GDP Growth Slowing?

By Padma Desai

American Economic Review, May 2006

The Historically Evolving Impact of the Ogallala Aquifer: Agricultural Adaptation to Groundwater and Drought

By Richard Hornbeck and Pinar Keskin

American Economic Journal: Applied Economics, January 2014

Agriculture on the American Plains has been constrained historically by water scarcity. Post-WWII technologies enabled farmers over the Ogallala aquifer to extract groundwater for large-scale irrigation. Comparing counties over the Ogallala with nearby...