A Dynamic Mincer Equation with an Application to Portuguese Data

Corrado Andini ()

No 2897, IZA Discussion Papers from Institute for the Study of Labor (IZA)

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 (search for similar items in EconPapers)
JEL-codes: I21 J31 C23 (search for similar items in EconPapers)
Date: 2007-07
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