The phenomenon that married men earn higher average wages than unmarried men, the so-called marriage premium, is well known. However, the robustness of the marriage premium across the wage distribution and the underlying causes of the marriage premium deserve closer scrutiny. Focusing on the entire wage distribution and employing recently developed semi-nonparametric tests for quantile treatmen...

This paper analyses the growth trends in the Indian Computer Industry for the period 1991-2002. We focus on the significance of size and age on growth of firms and whether or not the law of diminishing returns to learning holds for a high tech industry like computers. An important difference between the computer software and hardware industry is also taken into account: The software industry is...

This paper develops a new spectral approach to the estimation of the number of latent factors in large dimensional factor models. It shows that by imposing restrictions on the error terms we can derive a consistent procedure with improved finite sample performance in the presence of weak factors. The paper uses free probability theory to derive analytic expressions for the limiting moments of t...

This paper provides a review of linear panel data models with slope heterogeneity, introduces various types of random coe¢ cients models and suggests a common framework for dealing with them. It considers the fundamental issues of statistical inference of a random coe¢ cients formulation using both the sampling and Bayesian approaches. The paper also provides a review of heterogeneous dynamic p...

We estimate hurdle rates for firms’ investments in pollution abatement technology, using ex post data. The method is based on a structural option value model where the future price of polluting fuel is the major source of uncertainty facing the firm. The empirical procedure is illustrated using a panel of firms from the Swedish pulp and paper industry, and the energy and heating sector, and the...

This paper studies the estimation of quantile regression panel duration models. We allow for the possibility of endogenous covariates and correlated individual effects in the quantile regression models. We propose a quantile regression approach for panel duration models under conditionally independent censoring. The procedure involves minimizing l1 convex objective functions and is motivated by...

This paper tests a model of cigarette consumption which mixes two types of intertemporal dependencies: habit-formation and learning about the health consequences of smoking. This latter is argued to result partly from the observation of health developments, both one's own and those of other smokers in the same household. Using seven waves of British Household Panel Survey data, we present resul...

In this paper we discuss tests for residual cross section dependence in nonlinear panel data models. The tests are based on average pair-wise residual correlation coefficients. In nonlinear models, the definition of the residual is ambiguous and we consider two approaches: deviations of the observed dependent variable from its expected value and generalized residuals. We show the asymptotic con...

We explore the effects of income and, additionally education on the income, self-reported health and survival of people aged sixty-five and over in order to identify benefits resulting from education which are omitted in the conventional analysis with its focus on labour income excluding employer contributions. We find that well educated people enjoy substantially higher incomes and longer heal...

This study examines the interplay between job stability, wage rates, and marital instability. We use a Dynamic Selection Control model in which young men make sequential choices about work and family. Our empirical estimates derived from the model account for self-selection, simultaneity and unobserved heterogeneity. The results capture how job stability affects earnings, how both affect marita...