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Contents of Volume 4B ix
Contributors to Volume 4A xiii
1. Decomposition Methods in Economics 1
Nicole Fortin, Thomas Lemieux, Sergio Firpo
1. Introduction 2
2. Identi cation: What Can We Estimate Using Decomposition Methods? 13
3. Oaxaca-BlinderDecompositions of Mean Wages Dierentials 36
4. Going beyond the MeanDistributional Methods 52
5. Detailed Decompositions for General Distributional Statistics 74
6. Extensions 87
7. Conclusion 96
References 97
2. Field Experiments in Labor Economics 103
John A. List, Imran Rasul
1. Introduction 104
2. Human Capital 140
3. Labor Market Discrimination 149
4. Firms 177
5. Households 208
6. Concluding Remarks 213
References 213
3. Lab Labor: What Can Labor Economists Learn from the Lab? 229
Gary Charness, Peter Kuhn
1. Why Laboratory Experiments? 231
2. Issues in Designing Laboratory Experiments 238
3. Testing ``Traditional'’ Principal-Agent Theory in the Lab 246
4. Towards Behavioral Principal-Agent Theory: Fairness, Social Preferences and Eort 276
5. More Lab Labor: Bargaining, Search, Markets, and Discrimination 294
6. Conclusions 312
References 315
4. The Structural Estimation of Behavioral Models: Discrete Choice Dynamic
Programming Methods and Applications 331
Michael P. Keane, Petra E. Todd, Kenneth I. Wolpin
1. Introduction 332
2. The Latent Variable Framework for Discrete Choice Problems 335
3. The Common Empirical Structure of Static and Dynamic Discrete Choice Models 336
4. Applications 371
5. Concluding RemarksHow Credible are DCDP Models? 452
References 455
5. Program Evaluation and Research Designs 463
John DiNardo, David S. Lee
1. Introduction 464
2. Scope and Background 468
3. Research Designs Dominated by Knowledge of the Assignment Process 480
4. Research Designs Dominated by Self-Selection 516
5. Program Evaluation: Lessons and Challenges 529
References 532
6. Identi cation of Models of the Labor Market 537
Eric French, Christopher Taber
1. Introduction 538
2. Econometric Preliminaries 539
3. The Roy Model 545
4. The Generalized Roy Model 560
5. Treatment Eects 567
6. Duration Models and Search Models 591
7. Forward looking dynamic models 599
8. Conclusions 609
Technical Appendix 609
References 614
7. Search in Macroeconomic Models of the Labor Market 619
Richard Rogerson, Robert Shimer
1. Cyclical Fluctuations 623
2. Trends 663
3. Conclusion 691
References 694
8. Extrinsic Rewards and Intrinsic Motives: Standard and Behavioral Approaches
to Agency and Labor Markets 701
James B. Rebitzer, Lowell J. Taylor
1. Introduction 702
2. Agency and Extrinsic Rewards 705
3. Extrinsic rewards and dual-purpose incentives 721
4. Behavioral approaches to agency and motivation 727
5. Dual-Purpose incentives: can pay destroy intrinsic motivation? 747
6. Conclusions 764
References 766
xcvii
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