Read 2 readings and answer 4 multiple choice questions
Berman-Bound-Griliches-QJE94.pdf
Imbens-Rubin-Sacerdote-AER01.pdf
Need assignment help for this question?
If you need assistance with writing your essay, we are ready to help you!
OUR PROCESS
Order
Payment
Writing
Delivery
Why Choose Us: Cost-efficiency, Plagiarism free, Money Back Guarantee, On-time Delivery, Total Сonfidentiality, 24/7 Support, 100% originality
The following is one of the main conclusions in the study of lottery winners by Imbens, Rubin and Sacerdote (AER, 2001):
-
The impact of non-labor income on labor earnings cannot be estimated since an
“experiment” is impossible to undertake
-
People who win the lottery increase their labor earnings to be able to pay their taxes
-
Wining the lottery decreases labor earnings by about 11 percent
-
People who win the lottery decrease consumption by about 11 percent
From the discussion in class of the paper by Imbens, Rubin and Sacerdote (AER, 2001), the following is a reason why it is difficult to estimate the impact of non-labor income on work:
-
Non-labor income is not “exogenous”
-
It is hard to motivate the policy importance of the impact of non-labor income on work
-
People never truthfully report their income and hours worked in surveys
-
Natural experiments and not comparable to actual social experiments
The following is not true about skill wage differentials as defined by Berman, Bound and Griliches (QJE, 1994)
-
An example is the difference in wages between production and nonproduction workers
-
They have been rising consistently over the last 30 years, especially during the 1980s
-
An example is the difference in wages between workers who are college and high school
graduates
-
They have been decreasing consistently over the last 30 years, especially during the
1980s
Which one of the following is not a plausible explanation of the observed trend in skill wage differentials during the 1980s according to Berman, Bound and Griliches (QJE, 1994)?
-
There was a “defense buildup” of high-tech nature that caused an increase in demand for
skilled workers
-
International competition has implied lower demand for unskilled workers
-
There has been a substitution effect in the demand for labor of skilled workers
-
There has been “skill-biased technological change” during that time
-
