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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.

Suggested Citation

  • Daniel S. Hamermesh, 1999. "The Art of Labormetrics," NBER Working Papers 6927, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:6927
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    File URL: http://www.nber.org/papers/w6927.pdf
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    Cited by:

    1. 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).
    2. Dorothe Bonjour & Lynn F. Cherkas & Jonathan E. Haskel & Denise D. Hawkes & Tim D. Spector, 2003. "Returns to Education: Evidence from U.K. Twins," American Economic Review, American Economic Association, vol. 93(5), pages 1799-1812, December.
    3. 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 317-343, October.
    4. Per Pettersson, 2000. "Do Parties Matter for Fiscal Policy Choices," Econometric Society World Congress 2000 Contributed Papers 1373, Econometric Society.
    5. 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.
    6. Thomas Kniesner & W. Viscusi & James Ziliak, 2014. "Willingness to accept equals willingness to pay for labor market estimates of the value of a statistical life," Journal of Risk and Uncertainty, Springer, vol. 48(3), pages 187-205, June.
    7. 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.
    8. 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.
    9. Lundin, Martin & Skedinger, Per, 2006. "Decentralisation of active labour market policy: The case of Swedish local employment service committees," Journal of Public Economics, Elsevier, vol. 90(4-5), pages 775-798, May.
    10. Almeida, Rita, 2007. "The labor market effects of foreign owned firms," Journal of International Economics, Elsevier, vol. 72(1), pages 75-96, May.
    11. 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.
    12. Bill Collier, 2000. "The UK Wage Curve: New Evidence from the British Household Panel Survey," Studies in Economics 0010, School of Economics, University of Kent.

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    JEL classification:

    • J00 - Labor and Demographic Economics - - General - - - General
    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General

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