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The Art of Labormetrics

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  • Daniel S. Hamermesh

Abstract

Using a wide array of examples from the literature and from original estimates, this essay examines the pitfalls that make good empirical research in labor economics as much art as science. Appropriateness and cleanliness of data are considered, as are problems of extreme observations and interactions. The validity of attempts to produce exogeneity using instrumental variables and natural experiments' is examined, as are the treatment of selectivity and unobservable individual effects. Testing empirical results to ensure that they make sense is stressed along with the importance of clear, economical and useful presentation of those results.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 6927.

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Date of creation: Feb 1999
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Publication status: published as Hamermesh, Daniel S. "The Craft Of Labormetrics," International Labor Relations Review, 2000, v53(3,Apr), 363-380.
Handle: RePEc:nbr:nberwo:6927

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Cited by:
  1. Goolsbee, Austan & Klenow, Peter J, 2002. "Evidence on Learning and Network Externalities in the Diffusion of Home Computers," Journal of Law and Economics, University of Chicago Press, vol. 45(2), pages 317-43, October.
  2. Ardiana N. Gashi & Geoff Pugh & Nick Adnett, 2010. "Technological change and employer-provided training: evidence from UK workplaces," International Journal of Manpower, Emerald Group Publishing, vol. 31(4), pages 426-448, July.
  3. Rafael Di Tella & Ernesto Schargrodsky, 2004. "Do Police Reduce Crime? Estimates Using the Allocation of Police Forces After a Terrorist Attack," American Economic Review, American Economic Association, vol. 94(1), pages 115-133, March.
  4. Rita Almeida, 2004. "The labor market effects of foreign-owned firms," Policy Research Working Paper Series 3300, The World Bank.
  5. Dorothe Bonjour & Lynn Cherkas & Jonathan Haskel & Denise Hawkes & Tim Spector, 2002. "Returns to Education: Evidence from UK Twins," CEE Discussion Papers 0022, Centre for the Economics of Education, LSE.
  6. Skedinger, Per & Lundin, Martin, 2000. "Decentralisation of Active Labour Market Policy: The Case of Swedish Local Employment Service Committees," Working Paper Series 537, Research Institute of Industrial Economics.
  7. Bill Collier, 2000. "The UK Wage Curve: New Evidence from the British Household Panel Survey," Studies in Economics 0010, Department of Economics, University of Kent.
  8. Kniesner, Thomas J. & Viscusi, W. Kip & Ziliak, James P., 2012. "Willingness to Accept Equals Willingness to Pay for Labor Market Estimates of the Value of Statistical Life," IZA Discussion Papers 6816, Institute for the Study of Labor (IZA).
  9. Almeida, Rita K., 2003. "The Effects of Foreign Owned Firms on the Labor Market," IZA Discussion Papers 785, Institute for the Study of Labor (IZA).
  10. Benito, A. & Oswald, A., 2000. "Commuting in Great Britain in the 1990s," The Warwick Economics Research Paper Series (TWERPS) 560, University of Warwick, Department of Economics.
  11. Per Pettersson, 2000. "Do Parties Matter for Fiscal Policy Choices," Econometric Society World Congress 2000 Contributed Papers 1373, Econometric Society.
  12. Ziliak, Stephen T. & McCloskey, Deirdre N., 2004. "Size matters: the standard error of regressions in the American Economic Review," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 33(5), pages 527-546, November.

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