Human capital, aggregate shocks, and panel data estimation
Sumru Altug and
Robert A. Miller
No 47, Discussion Paper / Institute for Empirical Macroeconomics from Federal Reserve Bank of Minneapolis
Abstract:
This paper analyses how the wage and employment decisions of females are affected by past workforce participation and hours supplied. Our estimation methods exploit the fact that, when markets are complete, the Lagrange multiplier for an agents lifetime budget constraint always enters multiplicatively with the prices of (contingent claims to) consumption and leisure. Depending on the properties of the equilibrium price process, it is thus possible to predict the behavior of a wealthy agent by observing that of a poorer person living in a more prosperous world. This provides the key to estimating, nonparametrically, the expectations that enter the calculus of equilibrium decisionmaking, and ultimately the structural parameters which characterize preferences.
Keywords: Wages; Human capital (search for similar items in EconPapers)
Date: 1990
References: View references in EconPapers View complete reference list from CitEc
Citations:
Downloads: (external link)
https://www.minneapolisfed.org/research/dp/dp47.pdf Full Text (application/pdf)
Related works:
Working Paper: Human Capital, Aggregate Shocks and Panel Data Estimation (1991)
Working Paper: Human Capital, Aggregate Shocks and Panel Data Estimation (1991)
Working Paper: Human Capital, Aggregate Shocks and Panel Data Estimation (1991)
Working Paper: Human capital, aggregate shocks and panel data estimation (1991) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:fip:fedmem:47
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in Discussion Paper / Institute for Empirical Macroeconomics from Federal Reserve Bank of Minneapolis Contact information at EDIRC.
Bibliographic data for series maintained by Jannelle Ruswick ( this e-mail address is bad, please contact ).