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Takahashi (2014) has uncovered coding errors in our paper, Chang and Kim (2007)—henceforth, CK. We acknowledge and are embarrassed by these mistakes. We are grateful to Takahashi for uncovering them. While the correction decreases the volatility of the labor market wedge, we find that the main message of CK remains valid: the measured labor market wedge arises endogenously in an economy with incomplete capital markets and indivisible labor supply. For example, our model accounts for 18 percent of the volatility in the labor market wedge in the data; it was 43 percent in CK. (JEL D31, E32, J22, J24, J31)

We demonstrate that aggregate employment and consumption can increase without a corresponding movement in productivity in a model with heterogeneous agents where the only aggregate disturbance is a productivity shock. The interaction between incomplete capital markets and indivisible labor results in a low employment-productivity correlation and creates a time-varying wedge between the marginal rate of substitution (for commodity consumption and hours) and productivity. Our results caution against viewing the measured wedge as an inefficiency due to a failure of labor-market clearing or as a fundamental driving force behind business cycles. (JEL D31, E32, J22, J24, J31)

This paper explores the relationship between migration and fertility on the basis of data from a survey in the nine largest cities of Morocco in 1966. The findings suggest that this relationship depends on both the origin and historical context of migration streams. Women who migrated from villages before 1956, date of the independence of Morocco, had the highest fertility of any group. Post-1956 migrants, from urban or rural origin, had the lowest fertility of any group. Controlling for the effects of age at marriage and various socioeconomic factors reduced the fertility differentials but did not change their pattern. It is hypothesized that social mobility may explain the lower fertility of recent migrants.

There are many protests about loss of village land in rural China. By following both short-term and long-term outcomes of one such protest, in Wukan, Guangdong, this article illustrates the strategies Chinese governments employ to appease protesters, and the consequences of a local protest for individuals, the protest group, and the broader society.