A Dynamic Mincer Equation with an Application to Portuguese Data
26 Pages Posted: 13 Jul 2007
Date Written: June 2007
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: Suggested Citation