Estimating a hedonic earnings function with a nonparametric method

In this paper we apply the nonparametric approach of Bierens and Hartog (1988) to estimating and testing an earnings function which emphasizes the simultaneous impact of supply characteristics (like education) and demand characteristics (like job level). The data support this emphasis and point to significant non-linearities. In particular, job level comes out as an important variable.     

Quantifying corruption by a human capital earnings equation

This paper uses a human capital earnings equation to quantify administrative corruption in the public sector. Regression analyses are conducted based on information from surveys administered to public officials in Albania. After accounting for officials’ characteristics, e.g., schooling, experience, gender, type of agency, and public and private sectors’ features, we deduce that the administrative corruption was on average 2.6× the officials’ current salary in Albania, which is equivalent to 16.7% of the country’s GDP.

Errors in self-reported earnings: The role of previous earnings volatility and individual characteristics

I report the measurement error in self-reported earnings for a developing country using a novel data set. The data set consists of two cross-sections of the Federated States of Micronesia (FSM) wage and salary sectors; additionally, a subset of the two cross-sections may be linked to create a panel. Administrative data from FSM Social Security office are matched to the FSM Census data for the wage and salary sectors. I find that the error in annual self-reported earnings is centered on zero. Additionally, I find strong evidence for mean reversion in the data suggesting non-classical measurement error. I identify the impact of prior years' earnings variability on the current reporting of earnings using administrative data on earnings histories. Prior earnings volatility strongly affects measurement error in current period. However, the effect of prior shocks diminish significantly over time—suggesting that first-differencing and fixed-effects techniques will not improve accuracy.     

Intermittent work activity and earnings

Patterns of intermittent work activity appear to be more common in the modern labour market, at least for younger workers. This study extends earlier models of the relationship between labour market intermittency and earnings to include both part time work and nonparticipation, to differentiate between past work experience and current job tenure, to allow for nonlinear experience effects, and to account for selection bias arising from the exclusion of nonworkers. The results suggest that the effects of part time work and nonparticipation on earnings are similar. Moreover, some common patterns emerge: the effects are larger for women, greater for young workers, and greater when intermittency replaces current job tenure.