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Empirical Strategies in Labor Economics

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  • Joshua Angrist
  • Alan Krueger

Abstract

This chapter provides an overview of the methodological and practical issues that arise when estimating causal relationships that are of interest to labor economists. The subject matter includes identification, data collection, and measurement problems. Four identification strategies are discussed, and five empirical examples -- the effects of schooling, unions, immigration, military service, and class size -- illustrate the methodological points. In discussing each example, we adopt an experimentalist perspective that emphasizes the distinction between variables that have causal effects, control variables, and outcome variables. The chapter also discusses secondary datasets, primary data collection strategies, and administrative data. The section on measurement issues focuses on recent empirical examples, presents a summary of empirical findings on the reliability of key labor market data, and briefly reviews the role of survey sampling weights and the allocation of missing values in empirical research.

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File URL: http://www.irs.princeton.edu/pubs/pdfs/401.pdf
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Bibliographic Info

Paper provided by Princeton University, Department of Economics, Industrial Relations Section. in its series Working Papers with number 780.

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Date of creation: Jun 1998
Date of revision:
Handle: RePEc:pri:indrel:780

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Related research

Keywords: empirical strategies; methodology; instrumental variables;

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Blog mentions

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  1. The hitchhiker's guide to econometrics
    by Chris Blattman in Chris Blattman on 2009-02-08 14:37:00
  2. Mostly Harmless!
    by Martin Ryan in Geary Behaviour Centre on 2009-05-25 16:25:00
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