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Reconciling Theoretical and Empirical Human Capital Earnings Functions

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  • Stevens, M.

Abstract

To interpret estimates of empirical earnings functions, and to resolve sample selection problems such as "tenure bias", the wage determination process must be specified. This paper show that an earnings function can be interpreted as a wage offer in a labour market auction in which the worker accepts the highest offer received.

Suggested Citation

  • Stevens, M., 2000. "Reconciling Theoretical and Empirical Human Capital Earnings Functions," Economics Papers 2000-w9, Economics Group, Nuffield College, University of Oxford.
    • Handle: RePEc:nuf:econwp:2000-w9
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    Keywords

    WAGES ; HUMAN CAPITAL;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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