Estimates of interindustry wage differentials are obtained using a fixed-effects estimator on a long panel, the National Longitudinal Survey of Young Men (NLS). After controlling for observable worker characteristics, 84 percent of the residual variance of log wages across industries is...

An extensive literature in economics seeks to determine the quantitative impact of welfare benefits on economic and demographic behaviors. Most studies adopt a static choice framework to motivate their empirical specifications. The behaviors that are studied, however, have both immediate and...

In this paper, we provide estimates of welfare benefit effects on a set of behaviors that includes welfare participation, fertility, marriage, work and schooling using approximations to the decision rules that would be derived from an explicit dynamic optimization problem. We use the stylized...