A dynamic Mincer equation with an application to Portuguese data

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Abstract:

This article argues in favour of a dynamic specification of the Mincer equation, where the 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 labour-market experience, as suggested by some recent empirical evidence for the United States.

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/00036840701765429

Affiliations: Universidade da Madeira and CEEAplA, 9000-390 Funchal, Portugal

Publication date: June 1, 2010

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