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This thesis contribute towards the understanding of labor economics and applied econometrics; the thesis is made up of three chapters.The first chapter explores the causal effect of parents’ social capital on the intergenerational occupational inertia in addition to individuals’ labor market outcomes. A new data extract was constructed by re-weighting and combining the Panel Study of Income Dynamics (PSID) and the Survey of Income and Program Participation (SIPP) to correct the selection biases induced by children’s endogenous moving behaviors post-graduation. By exploiting the recent technological revolution and the resulting changes in occupational skill compositions measured by Dictionary of Titles (DOT) and its successor O*NET, it became possible to isolate the effect of inherited social capital from inherited human capital through a regression discontinuity design. Besides, a correction of the selection bias induced by the social capital advantage through children’s occupational switching patterns after the first jobs was made. The results indicate that around 30% of individuals choose the same occupation as their parents for their first job; such people rely more on their parents’ social connections in job hunting. Also, they enjoy a positive wage premium of about 5% of the percentile ranks of annual labor income for entry-level jobs but this positive effect fades away in the long-run.The second chapter studies the estimation and inference of nonlinear econometric model when the economic variables are contained in different datasets. We show that the unknown structural parameters of interest can be possibly uniquely identified if there are some common conditioning variables in different datasets. The identification result is constructive, which enables us to estimate the unknown parameters based on a simple minimum distance (MD) estimator. We study the asymptotic properties of the MD estimator and provide inference procedure. A simple model specification test

This thesis contribute towards the understanding of labor economics and applied econometrics; the thesis is made up of three chapters.The first chapter explores the causal effect of parents’ social capital on the intergenerational occupational inertia in addition to individuals’ labor market outcomes. A new data extract was constructed by re-weighting and combining the Panel Study of Income Dynamics (PSID) and the Survey of Income and Program Participation (SIPP) to correct the selection biases induced by children’s endogenous moving behaviors post-graduation. By exploiting the recent technological revolution and the resulting changes in occupational skill compositions measured by Dictionary of Titles (DOT) and its successor O*NET, it became possible to isolate the effect of inherited social capital from inherited human capital through a regression discontinuity design. Besides, a correction of the selection bias induced by the social capital advantage through children’s occupational switching patterns after the first jobs was made. The results indicate that around 30% of individuals choose the same occupation as their parents for their first job; such people rely more on their parents’ social connections in job hunting. Also, they enjoy a positive wage premium of about 5% of the percentile ranks of annual labor income for entry-level jobs but this positive effect fades away in the long-run.The second chapter studies the estimation and inference of nonlinear econometric model when the economic variables are contained in different datasets. We show that the unknown structural parameters of interest can be possibly uniquely identified if there are some common conditioning variables in different datasets. The identification result is constructive, which enables us to estimate the unknown parameters based on a simple minimum distance (MD) estimator. We study the asymptotic properties of the MD estimator and provide inference procedure. A simple model specification test