sector) disaggregation, the change in the level effect accounts for only 0.35 (0.41) percentage point of the 2.24 percentage point deceleration in labor-productivity growth between the 1948-65 and 1973-78 periods. The aggregate rate and level effects are not very sensitive to the degree of disaggregation (12versus 60-sector). Although some large level effects are evident within and across major industrial divisions, they often cancel out in the aggregate. However, the level effect from the shift out of farming is quantitatively large and is close to the aggregate level effect using either 12-sector or 60-sector disaggregation. Although one can approximate the aggregate level effect by looking only at that for agriculture, one should note that other fairly large level effects exist both within and across major industrial divisions other than agriculture.

N recent years, considerable attention has been devoted to understanding the causes of earnings differentials between blacks and whites. Conventional economic analysis of the issue has been divided into supply and demand factors. Demand side arguments point to differential returns to blacks and whites with the same level of market-valued characteristics as a principal cause of the lower earnings of blacks. Supply side arguments, on the other hand, focus on the quality and quantity of the market-valued characteristics of black compared to white workers. Although this dichotomization is obviously a necessary and useful step in understanding the causes of earnings differentials between blacks and whites, it fails to place sufficient emphasis on the process by which market-valued characteristics are actually obtained. In particular, given the effect of parents' economic status on their children, this approach does not illuminate the intertemporal consequences of racial discrimination for the acquisition of market-valued characteristics. Also, given the potential of the effects of the community of origin on achievement, it may, in addition, obscure many of the negative externalities affecting the acquisition process that result from being part of a discriminated-against group. This paper addresses these problems by examining a recursive model of the effects of socioeconomic background on education and earnings of black and white men ages 23-32. The main difference between this analysis and other efforts in this area is that it examines not only the effects of the socioeconomic status of an individual's parents, but also the effects of characteristics of the individual's community of origin. While other studies have included variables measuring differences due to region and/or size of place of origin, this paper also controls for differences between individuals at the more disaggregated neighborhood level. The findings of the study suggest that neighborhood differences are at least as important as family characteristics in explaining the gaps between black and white achievement and that the omission of neighborhood characteristics results in a misleading picture of the source of background effects.

The explanation typically given for longer tenure among workers who use informal contacts to find jobs is that relatives and friends reduce uncertainty about the quality of the match between worker and employer. An alternative explanation is that workers rely on informal information sources as a last resort. Such workers remain at their current jobs mainly because they have few alternative choices rather than because of better match quality. This article shows that the two different explanations are simultaneously valid for different types of contacts and can account for differences in the wage effects of job contacts.

The proposition that there is a large and growing black middle class is a major tenet of much recent work on black economic progress. This paper examines one aspect of middle-class status for black families, namely, the stability of high earnings among young male household heads. It finds that while such men are much less likely to have high earnings than are their white counterparts, there are only small racial differences in the stability of high earnings over time.

The proposition that there is a large and growing black middle class is a major tenet of much recent work on black economic progress. This paper examines one aspect of middle-class status for black families, namely, the stability of high earnings among young male household heads. It finds that, while such men are much less likely to have high earnings than are their white counterparts, there are only small racial differences in the stability of high earnings over time.

In order to determine the importance of parental time inputs in the intergenerational transmission of socioeconomic status, previous work relies on proxies such as family size, birth order, maternal employment, and retrospective reports of child care time. This paper is unique in finding a connection between more direct measures of mother's child-care time and children's outcomes as adults. It shows that (1) higher home productivity increases, but higher opportunity costs reduce, maternal child-care time and (2) greater child-care time of highly-educated, but not of less well-educated, mothers significantly raises children's years of schooling.

In order to determine the importance of parental time inputs in the intergenerational transmission of socioeconomic status, previous work relies on proxies such as family size, birth order, maternal employment, and retrospective reports of child care time. This paper is unique in finding a connection between more direct measures of mother's child-care time and children's outcomes as adults. It shows that (1) higher home productivity increases, but higher opportunity costs reduce, maternal child-care time and (2) greater child-care time of highly-educated, but not of less well-educated, mothers significantly raises children's years of schooling.

All in the Extended Family: Effects of Grandparents, Aunts, and Uncles on Educational Attainment by Linda Datcher Loury. Published in volume 96, issue 2, pages 275-278 of American Economic Review, May 2006

This article shows that college performance and selectivity have significant effects on earnings. It suggests that work that does not include college performance overstates the effect of college selectivity for Whites and understates it for Blacks. While the size of the effect of college selectivity for Blacks is larger than for Whites, the large Black earnings gain is offset for students whose own Scholastic Aptitude Test scores are significantly below the median of the college they attend. This results from the lower probability of graduation for "mismatched" Blacks and the subsequently lower earnings for those who fail to complete college.