This paper considers the identification and estimation of an extension of Roy's model (1951) of occupational choice, which includes a non-pecuniary component in the decision equation and allows for uncertainty on the potential outcomes. This framework is well suited to various economic contexts,...

In this paper we develop a model capturing key features of the Roy model, a search model, compensating differentials, and human capital accumulation on-the-job. We establish which features of the model can be non-parametrically identified and which cannot. We estimate the model and use it to...

We make two contributions to understanding the large shifts in occupational structure seen across developed countries. First, we estimate underlying prices on occupations, grouped by predominant task, using panel data from the UK and Germany. In both countries, price growth is positively...

During the last few decades, aggregate wage growth has been very unevenly distributed across space in Germany. While wages in Southern German local labor markets rose by up to 28 log points, they increased only modestly or even declined in the north. Similar results apply to employment changes....

This paper investigates to what extent changes in the returns to occupational skill and declining occupational segregation have reduced wage inequality between men and women. As a first pass, I find that roughly 65% of the decline in the gender wage gap between 1985 and 2010 can be explained by...

The debate about the impact of routine-biased technical change on wages revolves around the question whether occupational or overall wage distributions polarized. This paper instead argues that routine task prices should decline compared to abstract and manual task prices. I propose a new...

We analyze self-selection and sorting of emigrants from Finland, using full-population administrative data from Statistics Finland. We analyze emigration events lasting at least five years and decompose migrant self-selection into education, occupation, and unobserved abilities. Our analysis...

This paper proposes a new approach to estimate task prices per efficiency unit of skill in the Roy model. I show how the sorting of workers into tasks and their associated wage growth can be used to identify changes in task prices under relatively weak assumptions. The estimation exploits the...

The behaviour of individual movements in the wage distribution over time can be described by a Markov process. To investigate wage mobility in terms of transitions between quintiles in the wage distribution we apply a fixed effects panel estimation method suggested by Honorè and Kyriazidou...

This paper analyses the effects of expected earnings and local markets conditions on the behaviour of young adults with high school diplomas. Decisions to either remain in the parental home or form a new household are modelled jointly with those of either gaining work experience or investing in...