Wage Bargaining and the (Dynamic) Mincer Equation
AbstractThis 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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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3822.
Length: 16 pages
Date of creation: Nov 2008
Date of revision:
Publication status: published in: Economics Bulletin, 2009, 29 (3), 1846-1853
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Other versions of this item:
- 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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- Taylor, John B., 1999.
"Staggered price and wage setting in macroeconomics,"
Handbook of Macroeconomics,
in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 15, pages 1009-1050
- John B. Taylor, 1998. "Staggered Price and Wage Setting in Macroeconomics," NBER Working Papers 6754, National Bureau of Economic Research, Inc.
- James J. Heckman & Lance J. Lochner & Petra E. Todd, 2003.
"Fifty Years of Mincer Earnings Regressions,"
NBER Working Papers
9732, National Bureau of Economic Research, Inc.
- Corrado Andini, 2007. "Returns to education and wage equations: a dynamic approach," Applied Economics Letters, Taylor & Francis Journals, vol. 14(8), pages 577-579.
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