Accurate projections of lifetime earnings are useful in projecting Social Security benefits, trust fund balances, and economic resources of the elderly and the effects of changes in Social Security policy. This article projects lifetime Social Security earnings until retirement using data from the Survey of Income and Program Participation (SIPP) matched to Social Security records of annual ear...

Earnings non-synchronicity captures the extent to which firm-specific factors determine a firm’s earnings, and has important implications to a firm’s information environment. Prior research shows that high earnings non-synchronicity impedes corporate outsiders’ information processing. Given managers generally possess superior information about their firms’ unique operating and reporting strateg...

In order to assess the effect of Social Security reform on current and future workers, it is essential to accurately characterize the initial situations of representative workers affected by reform. For the purpose of analyzing typical reforms, the most important characteristic of a worker is the level and pattern of his or her preretirement earnings. Under the current system, pensions are dete...

This study estimates the earnings losses associated with workplace injuries that lead to permanent partial disability. Using unique administrative data from California, injured workers are matched to their co-workers with similar pre-injury earnings. Earnings loss is estimated as the difference in earnings between these two groups following injury. It is found that earnings losses are large. Mo...

This article presents replacement rates based on actual earnings for persons first receiving Social Security retired-worker benefits in the early 1980’s. One of the advantages of actual earnings replacement rates is that they reflect the complexities of real-life workers. Because there is no well-established procedure to calculate actual rates, several alternative definitions are used to show t...

We document that firms’ management of accounting earnings increased steadily from 1987 until the passage of the Sarbanes Oxley Act (SOX), with a significant increase during the period prior to SOX, followed by a significant decline after passage of SOX. However, the increase in earnings management preceding SOX was primarily in poorly performing industries. We also show that the informativeness...

The optimal managerial compensation contract is characterized in an environment in which the manager influences the distribution of earnings through an unobservable effort decision. Actual earnings, when realized, are private information observed only by the manager, who may engage in the costly manipulation of earnings reports. We derive the optimal contract that guarantees the manager non-neg...

How Immigrants Fare Across the Earnings Distribution: International Analyses This paper applies the quantile regression methodology to the study of the determinants of the distribution of earnings among the native born and immigrants in the United States and Australia. The analysis for immigrants is performed separately for those from Englishspeaking and non-English speaking origins. Using Cens...

The paper considers the role of econometrics in decision making under uncertainty. This leads to a focus on predictive distributions. The decision maker's subjective distribution is only partly speci"ed; it belongs to a set S of distributions. S can also be regarded as a set of plausible data-generating processes. Criteria are needed to evaluate procedures for constructing predictive distributi...