Research

Abstract

This paper develops a new method for identifying econometric models with partially latent covariates. Such data structures arise in industrial organization and labor economics settings where data are collected using an input-based sampling strategy, e.g., if the sampling unit is one of multiple labor input factors. We show that the latent covariates can be nonparametrically identified, if they are functions of a common shock satisfying some plausible monotonicity assumptions. With the latent covariates identified, semiparametric estimation of the outcome equation proceeds within a standard IV framework that ac- counts for the endogeneity of the covariates. We illustrate the usefulness of our method using a new application that focuses on the production functions of pharmacies. We find that differences in technology between chains and independent pharmacies may partially explain the observed transformation of the industry structure.

Abstract

This paper studies how occupational flexibility shapes married couples’ labor supply and the gender pay gap around childbirth. I estimate a dynamic discrete choice model of couples’ joint labor supply and occupational choices using NLSY79 data combined with Goldin’s (2014) measure of time flexibility. A key implication is that spousal flexibility matters more than own flexibility for married women’s labor market outcomes: switching a husband’s occupation from low to high flexibility increases his wife’s labor participation by 10 percentage points after childbirth, compared to 4 percentage points from switching her own occupation. Policies targeting women reduce the long-run gender pay gap, whereas extending benefits to both spouses weakens these gains and can expand the gap.

Abstract

This paper studies how individuals allocate time to acquire news and how this process shapes their attitudes toward media. We develop and

estimate a time allocation and news acquisition model using survey data, then investigate how time allocations affect attitude formation toward media. We find important differences in news acquisition patterns across racial, ethnic, and skill groups. Low-skill and minority individuals typically allocate more time to local news than high-skill and white individuals, who allocate more time to national and international news. Differences in preferences, opportunity costs of time, and access to news providers drive these informational gaps. Individuals who allocate more time to information acquisition and are more likely to be well-informed tend to hold more favorable attitudes toward media. Surprisingly, individuals who rely more heavily on television hold more favorable views of media than those who prefer social and online media.