Three essays in labor economics and economics of aging

First chapter analyzes the relationship between labor markets and supply of informal care focusing on the wage elasticities. Unlike most of the previous research estimating wage elasticities of informal care supply, this study recognizes that the wage rate may be measured with error or may be correlated with omitted variables, and thus has to be treated as endogenous. Using data from the Health and Retirement study, this paper exploits instrumental variable techniques to show that after controlling for wage endogeneity wage elasticity of informal care supply is negative and larger in magnitude than has been found before. Additional findings suggest that informal care supply is more elastic among individuals with siblings, and that it differs by the type of care provided to elderly parents.;Second chapter investigates whether the choice of the net versus gross measure of monetary transfers from adult children to their elderly parents can explain the differences in the estimates of the wage effect on money transfers found in earlier studies. It carefully documents the transfer pattern and points to the limitations of the OLS specification in the analysis of net transfers. A three-part model consisting of a multinomial probit and two OLS equations for negative and positive net transfers is offered as a better alternative for the analysis of net transfers. The results from estimating this model shows that wage effects differ for net recipients and net givers with the strongest effects observed at the extensive margin. These features provide a useful guideline for future theoretical research. One of the possible theoretical models that possesses such features is outlined in this paper.;Third chapter is devoted to the study of minimum wages exposure to which at young ages may lead to longer-run effects. Among the possible adverse longer-run effects are decreased labor market experience and accumulation of tenure, lower current labor supply because of lower wages, and diminished training and skill acquisition. Beneficial longer-run effects could arise if minimum wages increase skill acquisition, or if short-term wage increases are long-lasting. We estimate the longer-run effects of minimum wages by using information on the minimum wage history that workers have faced since potentially entering the labor market. The evidence indicates that even as individuals reach their late 20's, they work less and earn less the longer they were exposed to a higher minimum wage, especially as a teenager. The adverse longer-run effects of facing high minimum wages as a teenager are stronger for blacks. From a policy perspective, these longer-run effects of minimum wages are likely more significant than the contemporaneous effects of minimum wages on youths that are the focus of most research and policy debate.