We evaluate the effects of the school system on mathematical, verbal, and logical reasoning skills using data from the Finnish comprehensive school reform that abolished the two-track school system. We use a difference-in-differences approach that exploits the gradual implementation across the country. Cognitive skills are measured using test scores from the Finnish Army Basic Skills Test. The reform had small positive effects on verbal test scores but no effect on the mean performance in the arithmetic or logical reasoning tests. However, the reform significantly improved the scores of the students whose parents had less than a high school education.

The firm is almost entirely absent from models of immigration, and yet firms play a central role for high-skilled immigration. The H-1B visa program, for example, is a firm-sponsored entry where firms are responsible for every stage: from identifying the immigrant, to employing them, to filing for permanent residency on behalf of the immigrant. This central role of firms for high-skilled immigration suggests the traditional lens for evaluating the impact of immigration on natives through local area labor markets or national age-education approaches may miss important dynamics. We analyze the employment and wage trajectories of high-skilled workers born in America when a high-skilled immigrant arrives at their work site. We use linked employer-employee data during the 1995-2008 period from the Census Bureau for this exercise, which identifies the immigration status and country-of-birth of workers. We follow the subsequent career path of workers after high-skilled immigration occurs to the employee's work site both within firms (e.g., changes in employee salary, relocation to other sites) and across firms (e.g., movements to new jobs or out of workforce, long-term salary adjustments). The richness and depth of the Census Bureau data allow for multiple comparison points: selection on observables (e.g., age, tenure, salary levels and recent growth), varying immigration treatments across different work sites for the same firm for otherwise comparable employees, and (for a subset of cases and short time period at the end of our sample) randomization in H-1B admission lotteries.

Government employment programs for low-skilled workers typically emphasize rapid placement of participants into jobs, of which many are temporary-help jobs. Using data from Detroit’s welfare-to-work program and the Chernozhukov-Hansen instrumental variables quantile regression method, we find that neither direct-hire nor temporary-help job placements significantly affect the lower tail of the earnings distribution. In the upper tail, direct-hire placements yield sizable earnings increases for over half of participants, while temporary-help placements yield significant earnings losses at higher quantiles. Our results cast doubt on the efficacy of employment programs’ exclusive focus on rapid job placement and their widespread reliance on temporary-help placements.

We study the impact of skilled immigrants on the employment structures of US firms using matched employer-employee data. Unlike most previous work, we use the firm as the lens of analysis to account for greater heterogeneity and the fact that many skilled immigrant admissions are driven by firms themselves (e.g., the H-1B visa). OLS and IV specifications show rising overall employment of skilled workers with increased skilled immigrant employment by the firm. Employment expansion is greater for young natives than for their older counterparts. The departure rates for older workers relative to younger workers appear highest for those in STEM occupations.

The gender earnings gap is an expanding statistic over the lifecycle. We use the LEHD Census 2000 to understand the roles of industry, occupation, and establishment 14 years after leaving school. The gap for college graduates 26 to 39 years old expands by 34 log points, most occurring in the first 7 years. About 44 percent is due to disproportionate shifts by men into higher-earning positions, industries, and firms and about 56 percent to differential advances by gender within firms. Widening is greater for married individuals and for those in certain sectors. Non-college graduates experience less widening but with similar patterns.