In this paper, we examine optimal job choices when jobs differ in the rate at which they reveal information about workers’ skills. We show that informational differences across jobs give rise to experimentation in that workers may be willing to sacrifice current period output in order to take...

In this article, we examine optimal job choices when jobs differ in the rate at which they reveal information about workers’ skills. We then analyze how the optimal level of experimentation changes over a worker’s career and characterize job transitions and wage growth over the life cycle....

In most models in which firms and workers learn about worker productivity through repeated observations of on-the-job performance, the amount of information revealed about workers is exogenously given and constant across jobs. In this paper, we examine what happens when the amount of information...

We model competition between risk-neutral principals who hire weakly risk-averse agents to produce a good of variable quality. The agent can increase the likelihood of producing a high-quality good by providing costly effort. We demonstrate that, when the agent is strictly risk-averse, the cost...

This paper formulates and estimates a dynamic model of labor supply, occupational sorting, human capital accumulation and discrimination to explain the narrowing gender earnings gap from 1968 to 1993. The paper proves the model is identified and develops a three-step estimation technique....

This paper explores the estimation of a class of life-cycle discrete choice dynastic models. It provides a new representation of the value function for these class of models. It compare a multistage conditional choice probability (CCP) estimator based on the new value function representation...