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Wage Bargaining and the (Dynamic) Mincer Equation

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Author Info
Andini, Corrado () (University of Madeira)

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Abstract

This paper shows that, if observed earnings are the result of employer-employee wage bargaining, under a set of specific assumptions, the standard static Mincer equation can be thought as a particular case of a dynamic wage equation. Particularly, we argue that the standard static Mincer equation is implicitly based on the hypothesis that the employee has full bargaining power, and provide (further) empirical evidence against this hypothesis.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3822.

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Length: 16 pages
Date of creation: Nov 2008
Date of revision:
Handle: RePEc:iza:izadps:dp3822

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Related research
Keywords: Mincer equation; return to schooling; wage bargaining;

Find related papers by JEL classification:
I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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References listed on IDEAS
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  1. Corrado Andini, 2007. "Returns to education and wage equations: a dynamic approach," Applied Economics Letters, Taylor and Francis Journals, vol. 14(8), pages 577-579. [Downloadable!] (restricted)
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