Thesis
Heterogenous experience premiums in the Mincer equation
Washington State University
Master of Science (MS), Washington State University
2019
Handle:
https://hdl.handle.net/2376/101145
Abstract
The Mincer equation is a fundamental equation in labor market economics and likely one of the most estimated equations in all of econometrics. It relates the log of income with education and experience. While the Mincer equation has changed little since its creation in 1958 by Jacob Mincer, numerous modifications have come about to correct for potential problems like ability bias, increasing returns to education, and non-parallel returns to experience for different educational groups. Noting that few have attempted to econometrically model non-parallel returns to experience for similarly aged cohorts, this paper focuses on modelling the returns to experience for different educated, but similarly aged groups. Using a cross-sectional regression from the National Longitudinal Survey of Youth of 1997 for the year 2014, I find indication that the Mincer Equation misspecifies the returns to educational attainment, by giving larger returns to education, at the expense of heterogeneous returns to experience for different educational groups.
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Details
- Title
- Heterogenous experience premiums in the Mincer equation
- Creators
- Brendan Michael Lehman
- Contributors
- Benjamin W. Cowan (Degree Supervisor)
- Awarding Institution
- Washington State University
- Academic Unit
- Economic Sciences, School of
- Theses and Dissertations
- Master of Science (MS), Washington State University
- Publisher
- Washington State University; [Pullman, Washington] :
- Identifiers
- 99900525399401842
- Language
- English
- Resource Type
- Thesis