CES-WP-09-14
Estimating the "True" Cost of Job Loss: Evidence Using Matched Data from Califormia 1991-2000
Till von Wachter, Elizabeth Handwerker, Andrew Hildreth
June 01, 2009
Estimates of the cost of job displacement from survey and administrative data differ markedly.
This paper uses a unique match of data between the Displaced Worker Survey (DWS) and administrative wage records from California to examine the sources of this discrepancy. When we use similar estimation methods and account for measurement error in survey wages correlated with worker demographics, estimates of earnings losses at displacement are similar from both datasets and significantly larger than those based on the DWS alone. Also correcting for measurement errors in reported displacements suggests both sources of such estimates may yield lower bounds for the true cost of displacement.
77 Pages 314290 Bytes
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CES-WP-09-13
Firms' Exporting Behavior under Quality Constraints
Juan Carlos Hallak, Jagadeesh Sivadasan
May 01, 2009
We develop a model of international trade with export quality requirements and two
dimensions of firm heterogeneity. In addition to "productivity", firms are also heterogeneous in
their "caliber" {the ability to produce quality using fewer fixed inputs. Compared to singleattribute
models of firm heterogeneity emphasizing either productivity or the ability to produce
quality, our model provides a more nuanced characterization of firms' exporting behavior. In
particular, it explains the empirical fact that firm size is not monotonically related with export
status: there are small firms that export and large firms that only operate in the domestic market.
The model also delivers novel testable predictions. Conditional on size, exporters are predicted
to sell products of higher quality and at higher prices, pay higher wages and use capital more
intensively. These predictions, although apparently intuitive, cannot be derived from singleattribute
models of firm heterogeneity as they imply no variation in export status after size is
controlled for. We find strong support for the predictions of our model in manufacturing
establishment datasets for India, the U.S., Chile, and Colombia.
JEL codes:
64 Pages 645955 Bytes
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CES-WP-09-12
The Micro-Dynamics of Skill Mix Changes in a Dual Labor Market: The Spanish Manufacturing Experience
Adela Luque, C.J. Krizan
May 01, 2009
As in many other developed countries, the share of skilled workers in Spain’s labor force
dramatically increased during the 1990s. This paper decomposes the aggregate skill mix change
by a set of key firm characteristics and in the context of Spain’s dual labor market. We find that
continuing firms were the major drivers of skill mix growth and that expanding firms in
particular increased their ratio of skilled workers. Net entry played a smaller but positive role
due to higher-skilled entrants and lower-skilled exiters. Finally, we find that although firms with
higher concentrations of temporary workers make bigger employment changes overall, firms’
low-skilled employment is more strongly pro-cyclical than is high skilled employment.
34 Pages 115705 Bytes
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CES-WP-09-11
Concording U.S. Harmonized System Categories Over Time
Justin Pierce, Peter Schott
May 01, 2009
This paper: outlines an algorithm for concording U.S. ten-digit Harmonized System export and
import codes over time; describes the concordances we construct for 1989 to 2004; and provides
Stata code that can be used to construct similar concordances for arbitrary beginning and ending
years from 1989 to 2007.
20 Pages 119997 Bytes
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CES-WP-09-10
Complex Survey Questions and the Impact of Enumeration Procedures: Census/American Community Survey Disability Questions
Andrew Houtenville, William Erickson, Melissa Bjelland
April 01, 2009
This paper explores challenges relating to the identification of the population with disabilities,
focusing on Census Bureau efforts using the 2000 Decennial Census Long-Form (Census 2000)
and 2000-2005 American Community Survey (ACS). In particular, the analyses explore the
impact of survey methods on responses to the work limitation (i.e., employment disability)
question in these two Census products. Building on the research of Stern (2003) and Stern and
Brault (2005), we look for further evidence of misreporting of an employment disability by
specific sub-populations using the participation in the Supplemental Security Income program as
an exogenous employment disability status indicator along with a subset of ACS disability
questions. We expand upon these earlier studies by examining both false-positive and falsenegative
reports of employment disability by implementing logit estimations to examine the role
of respondent/enumerator error on the accuracy of the employment disability response. In this
manner, we enhance our understanding of Census 2000 and ACS responses to employment
disability questions through an exploration of the role of enumeration procedures in two types of
misclassifications, as well as by evaluating existing data and estimates to uncover characteristics
that might make an individual more likely to misreport an employment disability.
28 Pages 413119 Bytes
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