We develop a model of the labor market where firms incur an adjustment cost when one of their workers quits, and males and females form households assortatively by skill. We show how this environment can lead to an economy where females earn less and drop out more frequently than equally skilled...

The mobility of immigrants’ earnings and their experience in getting ahead in the Canadian labour market are reflection of the general state of economic opportunity in Canada. High or increasing degrees of upward mobility of earnings may indicate increasing opportunities for economic...

La mobilité des rémunérations des immigrants et l’expérience de leur progression sur le marché du travail canadien sont le reflet de l’état général des possibilités économiques au Canada. Des niveaux élevés ou en hausse de la mobilité croissante des revenus peuvent indiquer une...

Universality is a hallmark of Canadian social policy for very young children. The evidence base for these policies is small, non-experimental and offers mixed results. In contrast the evidence base for targeted early childhood interventions is largely experimental and offers strong guidance....

We provide the first empirical application of a new approach proposed by Lee (2007) to estimate peer effects in a linear-in-means model. The approach allows to control for group-level unobservables and to solve the reflection problem, without imposing ad hoc exclusion restrictions or requiring...

There has been growing interest in using specific genetic markers as instrumental variables in attempts to assess causal relationships between health status and socioeconomic outcomes, including human capital accumulation. In this paper we use a combination of family fixed effects and genetic...

This paper introduces an empirical strategy to estimate dynamic treatment effects in randomized trials that provide treatment in multiple stages and in which various noncompliance problems arise such as attrition and selective transitions between treatment and control groups. Our approach is...

Abstract Suppose that the econometrician is interested in comparing two misspecified moment restriction models, where the comparison is performed in terms of some chosen measure of fit. This paper is concerned with describing an optimal test of the Vuong (1989) and Rivers and Vuong (2002) type...

This paper proposes several testing procedures for comparison of misspecified calibrated models. The proposed tests are of the Vuong-type (Vuong, 1989; Rivers and Vuong, 2002). In our framework, the econometrician selects values for model's parameters in order to match some characteristics of data...

It is very desirable to find flexible functional forms for unit cost (or profit) functions that are globally concave (or convex). It is easy to find flexible functional forms that are locally well behaved but do not satisfy the required regularity conditions globally. This note examines the...