Empirical essays in environmental and labor economics

This dissertation includes three empirical essays that address topics in environmental and labor economics. The analysis in each essay uses data that are more complete than data used in previous studies addressing related topics.; The first essay uses plant-level panel data to examine the effects that trade unions have on compliance with environmental regulation in the chemical manufacturing industry. Compliance is measured by pollution discharges relative to permitted limits and by the number of compliance violations. The analysis finds that unionized plants discharge more pollution than non-unionized plants relative to permitted limits. Likewise, the analysis provides weak evidence that unionized plants incur more compliance violations than non-unionized plants. In addition, there is evidence from inspections that contradicts the argument that unions take an interest in environmental quality. These results contradict prior theoretical and empirical research that indicates unions have incentives to support stricter environmental regulation.; The second essay uses firm-level panel data to examine the effects environmental regulation has on financial performance in the chemical manufacturing industry. Regulation is measured by the permitted limits of the firm relative to average permitted limits across all firms in the sample. The analysis finds that firms subject to more stringent permitted limits have worse financial performance. In addition, monitoring interventions intended to reinforce the stringency of regulation generally have a negative effect on financial performance. These results contradict prior economic research that argues stringent regulation enhances financial performance.; The third essay uses panel data to examine a skill-weighted approach to firm-specific human capital and makes inferences about the contributions of skill differentials to increasing earnings inequality. Skills are measured by work activities. The analysis finds evidence that work activities are skills that have large effects on wages. In addition, returns to most work activities remain strong but much smaller when the analysis controls for unobserved individual ability. These results support prior theoretical research that argues most skills have a general component that earns different returns across firms. The analysis also finds weak evidence to support skill-biased technological change as an explanation for between-group earnings inequality.