A Dynamic Mincer Equation with an Application to Portuguese Data

26 Pages Posted: 13 Jul 2007

See all articles by Corrado Andini

Corrado Andini

IZA Institute of Labor Economics

Date Written: June 2007

Abstract

This paper argues in favor of a dynamic specification of the Mincer equation, where past observed earnings play the role of additional explanatory variable for current observed earnings. A dynamic approach offers an explanation why the return to schooling in terms of observed earnings is not independent of labor-market experience, as suggested by some recent empirical evidence for the United States.

Keywords: Mincer equation, return to schooling, wage level, panel data

JEL Classification: I21, J31, C23

Suggested Citation

Andini, Corrado, A Dynamic Mincer Equation with an Application to Portuguese Data (June 2007). IZA Discussion Paper No. 2897. Available at SSRN: https://ssrn.com/abstract=1000371

Corrado Andini (Contact Author)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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