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

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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...

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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

The New Politics of Poverty: The Nonworking Poor in America.

This paper presents an empirical analysis of self-reported reservation wages for unemployed young black and white males. The results show that young blacks seek wages which are comparable to those of young whites in absolute terms, but which are higher relative to what is available on the demand side of the market. These relatively higher reservation wages of young blacks contribute to their unemployment durations and somewhat to their subsequently received wages. Changes in reservation wages may thus help to explain the trends in wages and employment of young blacks in recent years.

http://faculty.smu.edu/millimet/classes/eco7321/papers/holzer%201986.pdf

Reservation Wages and Their Labor Market Effects for Black and White Male Youth.

In this paper we review evidence from previous studies of job and employment instability among less-educated young workers, and we provide some new evidence from the National Longitudinal Survey of Youth. Our results indicate that early employment instability contributes somewhat to the low levels of employment observed among high school dropouts, especially females. Important determinants of job stability include the cognitive skills of the workers themselves (as measured by math test scores); current or previous experience and job tenure; and a variety of job characteristics, including starting wages, occupation and industry. Job instability among female dropouts seems to be strongly related to fertility history and marital status. Some implications for policy, especially welfare reform, are discussed as well.

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Job Change and Job Stability among Less-Skilled Young Workers

In this paper we explore the effects of labor demand shifts and population adjustments across metropolitan areas on the employment and earnings of various demographic groups during the 1980s. Results show that, although earnings and employment deteriorated for less-education and black males in most areas in the 1980s, there was a good deal of geographic variation in the magnitudes of these changes. Shifts in labor demand across local areas contributed to this variation, and had greater relative impacts on the earnings and employment of these demographic groups. We also find that popu- lation shifts across areas, presumably due to migation, at least partially offset the effects of these demand shifts. But less-education workers showed substantially lower population adjustments in response to these demand shifts. These limited supply responses apparently contributed importantly to relatively greater deterioration of employment and earnings of these groups in declining areas during the 1980s.

Demand Shifts, Population Adjustments, and Labor Market Outcomes During the 1980s

In this paper we present data from a survey of 900 employers in Michigan during 1997. The survey was designed to gauge employer demand for welfare recipients. The results show that, given the tightness of labor markets there, the prospective demand for recipients is quite high—employers report that 3 percent of all jobs currently, and almost 9 percent over the following year, might be available to unskilled recipients. On the other hand, prospective employment is quite highly correlated with measures of unmet labor demand, implying that much of it could disappear during the next recession. Many of the prospective jobs are also found in establishments to which innercity minorities might have limited access, such as small or suburban establishments that receive few black applicants or that recruit informally. Absenteeism and basic skill readiness are potential problems, based on jobs filled by recipients to date or those that are potentially available. The effects of a variety of potential policy responses targeted at private employers (such as job placement efforts and tax credits for employment or training) are considered as well. © 1999 by the Association for Public Policy Analysis and Management.

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Harry J. Holzer

Papers

The New Politics of Poverty: The Nonworking Poor in America.

Reservation Wages and Their Labor Market Effects for Black and White Male Youth.

Job Change and Job Stability among Less-Skilled Young Workers

Demand Shifts, Population Adjustments, and Labor Market Outcomes During the 1980s

Will employers hire welfare recipients? Recent survey evidence from Michigan