The second edition of this acclaimed graduate text provides a unified treatment of two methods used in contemporary econometric research, cross section and data panel methods. By focusing on assumptions that can be given behavioral content, the book maintains an appropriate level of rigor while emphasizing intuitive thinking. The analysis covers both linear and nonlinear models, including models with dynamics and/or individual heterogeneity. In addition to general estimation frameworks (particular methods of moments and maximum likelihood), specific linear and nonlinear methods are covered in detail, including probit and logit models and their multivariate, Tobit models, models for count data, censored and missing data schemes, causal (or treatment) effects, and duration analysis. Econometric Analysis of Cross Section and Panel Data was the first graduate econometrics text to focus on microeconomic data structures, allowing assumptions to be separated into population and sampling assumptions. This second edition has been substantially updated and revised. Improvements include a broader class of models for missing data problems; more detailed treatment of cluster problems, an important topic for empirical researchers; expanded discussion of "generalized instrumental variables" (GIV) estimation; new coverage (based on the author's own recent research) of inverse probability weighting; a more complete framework for estimating treatment effects with panel data, and a firmly established link between econometric approaches to nonlinear panel data and the "generalized estimating equation" literature popular in statistics and other fields. New attention is given to explaining when particular econometric methods can be applied; the goal is not only to tell readers what does work, but why certain "obvious" procedures do not. The numerous included exercises, both theoretical and computer-based, allow the reader to extend methods covered in the text and discover new insights.

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Econometric Analysis of Cross Section and Panel Data

This paper comprehensively examined the linkages between systems of High Performance Work Practices and firm performance. Results based on a national sample of nearly one thousand firms indicate that these practices have an economically and statistically significant impact on both intermediate outcomes (turnover and productivity) and short- and long-term measures of corporate financial performance. Support for the predictions that the impact of High Performance Work Practices is in part contingent on their interrelationships and links with competitive strategy was limited.

https://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1803666_code1640113.pdf?abstractid=1803666&mirid=5&type=2

The Impact of Human Resource Management Practices on Turnover, Productivity, and Corporate Financial Performance

This study comprehensively evaluated the links between systems of High Performance Work Practices and firm performance. Results based on a national sample of nearly one thousand firms indicate that these practices have an economically and statistically significant impact on both intermediate employee outcomes (turnover and productivity) and short- and long-term measures of corporate financial performance. Support for predictions that the impact of High Performance Work Practices on firm performance is in part contingent on their interrelationships and links with competitive strategy was limited. The impact of human resource management (HRM) policies and prac

/pdf/the-impact-of-human-resource-management-practices-on-hesrlz2jwc.pdf

The Impact Of Human Resource Management Practices On Turnover, Productivity, And Corporate Financial Performance

This paper considers causal inference and sample selection bias in nonexperimental settings in which (i) few units in the nonexperimental comparison group are comparable to the treatment units, and (ii) selecting a subset of comparison units similar to the treatment units is difficult because units must be compared across a high-dimensional set of pre-treatment characteristics. We discuss the use of propensity score-matching methods, and implement them using data from the National Supported Work experiment. Following LaLonde (1986), we pair the experimental treated units with nonexperimental comparison units from the CPS and PSID, and compare the estimates of the treatment effect obtained using our methods to the benchmark results from the experiment. For both comparison groups, we show that the methods succeed in focusing attention on the small subset of the comparison units comparable to the treated units and, hence, in alleviating the bias due to systematic differences between the treated and compariso...

/pdf/propensity-score-matching-methods-for-nonexperimental-causal-4e1c6q0ndl.pdf

Propensity score-matching methods for nonexperimental causal studies

Part 1 Unemployment in the model of balanced growth: the labour market long-run equilibrium and balanced growth adjustment dynamics. Part 2 further ananlysis of the labour market: search intensity and job advertising.

Equilibrium Unemployment Theory

Have federal antidiscrimination policies been effective in improving employment outcomes for minorities and females? If so, why have the relative wages and employment of blacks deteriorated in recent years? What other factors on the demand side of the labor market have contributed to these developments, and what are the appropriate public policy responses? In this paper I address these issues. I begin by reviewing evidence in the literature on the recent employment problems of minorities and on hiring discrimination. I specifically consider the effectiveness of Equal Employment Opportunity laws and Affirmative Action programs in improving employment outcomes for minorities as well as females. I then provide new evidence from a recent survey of over 3000 employers on the determinants of hiring. I focus on employer skill needs and hiring procedures, as well as the racial mix of the firm’s applicants and customers, in determining employment outcomes for minorities and females. Employer use of Affirmative Action in recruiting and hiring is considered as well. Finally, I consider the implications of these findings for the usefulness of antidiscrimination policies and other approaches for improving employment outcomes for less-skilled minorities. Employer Hiring Decisions and Antidiscrimination Policy In the past few decades, the employment and earnings of young blacks have deteriorated significantly, especially among those less educated. This deterioration has occurred in spite of efforts to protect and enhance their employment status through a variety of governmental antidiscrimination efforts, such as federal Equal Employment Opportunity (EEO) laws and Affirmative Action programs for government contractors. Furthermore, the employment and earnings of females have improved during the same period, and even less-educated females have made gains relative to less-educated males. A fairly large body of research suggests that various changes on the demand side of the labor market, such as growing skill needs of employers and their changing geographic locations, have heavily contributed to these developments. But little direct evidence has been available on these issues to date, since so little data have been available from the demand side of the labor market. In this paper I provide new evidence on employer skill needs, hiring behavior, and their effects on employment of minorities and women. I use data from a new survey of over 3000 employers in four large metropolitan areas that are described more fully below. I first review the literature on government antidiscrimination policies and on the recent deterioration in labor market outcomes for blacks, then present empirical evidence on employer hiring of minorities and women. I conclude with a discussion of implications for antidiscrimination policies and for government efforts more generally aimed at the demand side of the labor market for minorities and women.

Employer Hiring Decisions and Antidiscrimination Policy

Moving Up or Moving On: Workers, Firms and Advancement in the Low-Wage Labor Market

In Hurricane Katrina's aftermath, several hundred thousand former residents of New Orleans and the Gulf Coast lost their jobs. In this paper we review some of the short- and longer-term challenges and uncertainties involved in tackling labor market issues in rebuilding New Orleans. We also present some policy proposals for addressing them. The needs of those returning to New Orleans, as well as those who choose to remain or go elsewhere, are considered. We argue that, for fairly modest public expenditures, the labor market disadvantages of many current and former residents can be addressed and their long-term employment outcomes improved.

Employment Issues and Challenges in Post-Katrina New Orleans

This document reports the results of research and analysis undertaken by the U.S. Census Bureau staff. It has undergone a Census Bureau review more limited in scope than that given to official Census Bureau publications. [This document is released to inform interested parties of ongoing research and to encourage discussion of work in progress.] This research is a part of the U.S. Census Bureau’s Longitudinal Employer-Household Dynamics Program (LEHD), which is partially supported by the National Science Foundation Grant SES-9978093 to Cornell University (Cornell Institute for Social and Economic Research), the National Institute on Aging Grant 5 R01 AG018854-02, and the Alfred P. Sloan Foundation. The views expressed herein are attributable only to the author(s) and do not represent the views of the U.S. Census Bureau, its program sponsors or data providers. Some or all of the data used in this paper are confidential data from the LEHD Program. The U.S. Census Bureau is preparing to support external researchers’ use of these data; please contact U.S. Census Bureau, LEHD Program, Demographic Surveys Division, FOB 3, Room 2138, 4700 Silver Hill Rd., Suitland, MD 20233, USA.

Harry J. Holzer

Papers

Employer Hiring Decisions and Antidiscrimination Policy

Moving Up or Moving On: Workers, Firms and Advancement in the Low-Wage Labor Market

Employment Issues and Challenges in Post-Katrina New Orleans

Worker Advancement in the Low-Wage Labor Market: The Importance of Good Jobs

The Black Youth Employment Crisis: Summary of Findings