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Mincer Earnings Regressions.pdf

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Preview of Mincer Earnings Regressions
🔗 Source: docs.iza.org
📊 Size: 677 KB
👤 Author: IZA
⬇️ Downloads: 136

Summary

The Mincer earnings function is a cornerstone of empirical economics, used to estimate returns to schooling, but its assumptions are often violated, leading to biased estimates. Relaxing functional form assumptions and accounting for taxes, tuition, nonlinearity, and nonseparability between schooling and work experience is necessary. Cross-sectional estimates of returns to schooling can be dramatically biased, especially in periods of rapid technological change. Accounting for uncertainty and agent expectation formation substantially affects rate of return estimates, and considering sequential resolution of uncertainty gives rise to option values, changing the analysis of schooling decisions.

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Description

The Mincer earnings function is a cornerstone of empirical economics, used to estimate returns to schooling, but its assumptions are often violated, leading to...

Technical Information

  • File Format: PDF
  • File Size: 677 KB
  • Pages: 75
  • Language: EN
  • Author: IZA
  • Total Downloads: 136
  • Last Updated: 1 month ago

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This PDF document about Mincer Earnings Regressions provides comprehensive information and guidance. Whether you're a beginner or advanced user, this resource offers valuable insights into Mincer Earnings Regressions.

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