Returns to education and wage equations: a dynamic approach
Corrado Andini ()
Applied Economics Letters, 2007, vol. 14, issue 8, 577-579
We study the impact of education on within-groups wage inequality using quantile-regression techniques and US data for the period 1980 to 1987. Our contribution consists of comparing estimates based on a standard Mincer equation with estimates based on a modified Mincer equation in which past earnings play the role of additional explanatory variable. We find that a dynamic model does not give the same answer as a static model regarding the impact of schooling on earnings dispersion, and provide an explanation for this result.
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