A formal model of occupational choice is developed that shows the extent to which the compensation for increased duration exceeds that for increased risk. Using the Panel Study of Income Dynamics linked to industry data on injuries and unemployment, the authors find nearly all the compensating...

The authors propose models with an ascriptive characteristic generating earnings differentials and causing sectoral sorting, allowing them to distinguish among sources producing such differentials. They use longitudinal data on a large sample of graduates from one law school and measure beauty...

This study examines the costs firms face in adjusting labor demand to exogenous shocks. Evidence on monthly plant-level data shows that adjustment proceeds in jumps: employment is unchanged in response to small shocks, but moves instantaneously to a new equilibrium if the shocks are large....