Publication and Attenuation Biases in Measuring Skill Substitution

A-Tier
Journal: Review of Economics and Statistics
Year: 2024
Volume: 106
Issue: 5
Pages: 1187-1200

Authors (4)

Tomas Havranek (Univerzita Karlova v Praze) Zuzana Irsova (Univerzita Karlova v Praze) Lubica Laslopova (not in RePEc) Olesia Zeynalova (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 4 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

A key parameter in the analysis of wage inequality is the elasticity of substitution between skilled and unskilled labor. We show that the empirical literature is consistent with both publication and attenuation bias in the estimated inverse elasticities. Publication bias, which exaggerates the mean reported inverse elasticity, dominates and results in corrected inverse elasticities closer to zero than the typically published estimates. The implied mean elasticity is 4, with a lower bound of 2. Elasticities are smaller for developing countries. To derive these results, we use nonlinear tests for publication bias and model averaging techniques that account for model uncertainty.

Technical Details

RePEc Handle
repec:tpr:restat:v:106:y:2024:i:5:p:1187-1200
Journal Field
General
Author Count
4
Added to Database
2026-01-25