Mobility and the Return to Education: Testing a Roy Model with Multiple Markets

Self-selected migration presents one potential explanation for why observed returns to a college education in local labor markets vary widely even though U.S. workers are highly mobile. To assess the impact of self-selection on estimated returns, this paper first develops a Roy model of mobility and earnings where workers choose in which of the 50 states (plus the District of Columbia) to live and work. Available estimation methods are either infeasible for a selection model with so many alternatives or place potentially severe restrictions on earnings and the selection process. This paper develops an alternative econometric methodology which combines Lee's (1983) parametric maximum order statistic approach to reduce the dimensionality of the error terms with more recent work on semiparametric estimation of selection models (e.g., Ahn and Powell, 1993). The resulting semiparametric correction is easy to implement and can be adapted to a variety of other polychotomous choice problems. The empirical work, which uses 1990 U.S. Census data, confirms the role of comparative advantage in mobility decisions. The results suggest that self-selection of higher educated individuals to states with higher returns to education generally leads to upward biases in OLS estimates of the returns to education in state-specific labor markets. While the estimated returns to a college education are significantly biased, correcting for the bias does not narrow the range of returns across states. Consistent with the finding that the corrected return to a college education differs across the U.S., the relative state-to-state migration flows of college- versus high school-educated individuals respond strongly to differences in the return to education and amenities across states.Selection Bias, Polychotomous Choice, Roy Model, Return to Education, Migration

On the estimation of a fixed effects model with selective non-response

Economics;Statistical Methods;econometrics

Semi-parametric estimation of the sample selection model

Wages;Estimation;Models

Structure-Aware Sampling: Flexible and Accurate Summarization

In processing large quantities of data, a fundamental problem is to obtain a summary which supports approximate query answering. Random sampling yields flexible summaries which naturally support subset-sum queries with unbiased estimators and well-understood confidence bounds. Classic sample-based summaries, however, are designed for arbitrary subset queries and are oblivious to the structure in the set of keys. The particular structure, such as hierarchy, order, or product space (multi-dimensional), makes range queries much more relevant for most analysis of the data. Dedicated summarization algorithms for range-sum queries have also been extensively studied. They can outperform existing sampling schemes in terms of accuracy on range queries per summary size. Their accuracy, however, rapidly degrades when, as is often the case, the query spans multiple ranges. They are also less flexible - being targeted for range sum queries alone - and are often quite costly to build and use. In this paper we propose and evaluate variance optimal sampling schemes that are structure-aware. These summaries improve over the accuracy of existing structure-oblivious sampling schemes on range queries while retaining the benefits of sample-based summaries: flexible summaries, with high accuracy on both range queries and arbitrary subset queries

Central auditory neurons have composite receptive fields

High-level neurons processing complex, behaviorally relevant signals are sensitive to conjunctions of features. Characterizing the receptive fields of such neurons is difficult with standard statistical tools, however, and the principles governing their organization remain poorly understood. Here, we demonstrate multiple distinct receptive-field features in individual high-level auditory neurons in a songbird, European starling, in response to natural vocal signals (songs). We then show that receptive fields with similar characteristics can be reproduced by an unsupervised neural network trained to represent starling songs with a single learning rule that enforces sparseness and divisive normalization. We conclude that central auditory neurons have composite receptive fields that can arise through a combination of sparseness and normalization in neural circuits. Our results, along with descriptions of random, discontinuous receptive fields in the central olfactory neurons in mammals and insects, suggest general principles of neural computation across sensory systems and animal classes