ECONOMETRICS RESEARCH SEMINAR	INVITATION
R E M I N D E R The Department of Economics and Finance at the Institute for Advanced Studies cordially invites you to the following Econometrics Research Seminar Thursday, June 11, 2015 IHS, Stumpergasse 56, 1060 Vienna, BZSOZ A121 9:00 am (Please note that the seminar will start at 9 am sharp in lecture room BZSOZ A121 on the 1^st floor!) Max Kasy Harvard University Title: Labor demand and wage inequality - an empirical Bayes approach Slides Preliminary draft of the paper Abstract: To what extent can changes in the distribution of wages be explained by changes in labor supply of various groups (due to demographic change, migration, or expanded access to education), and to what extent are other factors (technical and institutional change) at work? We develop a flexible methodology for answering this central question of labor economics, using an empirical Bayes approach, without imposing the restrictions on heterogeneity and on cross-elasticities of labor demand assumed by the literature. Our approach allows to reduce the variance of estimates by exploiting the information embodied in economic structural models, while avoiding the inconsistency and non-robustness of misspecified structural models. This approach also allows to overcome the issues associated with pretesting and the conventional duality of testing theories / imposing theories. We characterize the geometry and the mean squared error of our estimator. One of our key theoretical results explicitly describes the risk-function of empirical Bayes under an asymptotic approximation. Simulations confirm our characterizations and the fact that our estimator uniformly dominates unrestricted estimation over a large space of parameter values. In our empirical application, we analyze changes since 2003 of the wage distribution in the countries of the European Union,  using the EU-SILC data. paper jointly with Pirmin Fessler We are looking forward to seeing you! Institute for Advanced Studies Department of Economics and Finance Stumpergasse 56, 1060 Vienna, Austria Tel.: +43 1 599 91 145 e-Mail: economics@ihs.ac.at http://economics.ihs.ac.at		LINKS DIRECTIONS TO IHS on Google maps ECONOMETRICS RESEARCH SEMINAR on Google calendar ECONOMICS SEMINARS IN VIENNA on Google calendar
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