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Earning Motivation and The Conventional Earning Function

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Author Info
Muhammad Purnagunawan () (Department of Economics, Padjadjaran University)

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Abstract

People have different motivation for having a paid job, and this might came from different expectation, value and also gender roles. Nevertheless, most analysis of earning determinant has neglected this possibility. Using data from Household, Income and Labour Dynamics (HILDA) in Australia in 2001 and 2004, this paper investigates the structure of human capital earning equation and its stability after controlling for earning motivation. The results suggest that some measure of earning motivation have effects. However, even after controlling for earning motivation, the returns to schooling and experience do not change significantly. This suggests that the conventional earning function is stable and robust with respect to the influences of earning motivation.

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File URL: http://www.equitablepolicy.org/wpaper/200805.pdf
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File Function: First version, 2008
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Publisher Info
Paper provided by Department of Economics, Padjadjaran University in its series Working Papers in Economics and Development Studies (WoPEDS) with number 200805.

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Length: 33 pages
Date of creation: Sep 2008
Date of revision: Sep 2008
Handle: RePEc:unp:wpaper:200805

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Related research
Keywords: return to education; earning motivation; wage; HILDA;

Find related papers by JEL classification:
I2 - Health, Education, and Welfare - - Education
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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References listed on IDEAS
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  1. Lorraine Dearden, 1998. "Ability, families, education and earnings in Britain," IFS Working Papers W98/14, Institute for Fiscal Studies. [Downloadable!]
  2. Orley Ashenfelter & Colm Harmon & Hessel Oosterbeek, 1999. "A Review of Estimates of the Schooling/Earnings Relationship, with Tests for Publication Bias," Working Papers 804, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
    Other versions:
  3. McKinley L. Blackburn & David Neumark, 1993. "Are OLS Estimates of the Return to Schooling Biased Downward? Another Look," NBER Working Papers 4259, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  4. Levin, Jesse & Plug, Erik J. S., 1999. "Instrumenting education and the returns to schooling in the Netherlands," Labour Economics, Elsevier, vol. 6(4), pages 521-534, November. [Downloadable!] (restricted)
  5. Miller, Paul & Mulvey, Charles & Martin, Nick, 2006. "The return to schooling: Estimates from a sample of young Australian twins," Labour Economics, Elsevier, vol. 13(5), pages 571-587, October. [Downloadable!] (restricted)
  6. Ichino, Andrea & Winter-Ebmer, Rudolf, 1998. "Lower and Upper Bounds of Returns to Schooling: An Exercise in IV estimation with Different Instruments," CEPR Discussion Papers 2007, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  7. Ashenfelter, Orley & Krueger, Alan B, 1994. "Estimates of the Economic Returns to Schooling from a New Sample of Twins," American Economic Review, American Economic Association, vol. 84(5), pages 1157-73, December. [Downloadable!] (restricted)
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  8. Andrew Leigh & Chris Ryan, 2005. "Estimating Returns to Education: Three Natural Experiment Techniques Compared," CEPR Discussion Papers 493, Centre for Economic Policy Research, Research School of Social Sciences, Australian National University. [Downloadable!]
  9. John Quiggin, 1999. "Human Capital Theory and Education Policy in Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 32(2), pages 130-144. [Downloadable!] (restricted)
  10. Chevalier, Arnaud, 2003. "Motivation, expectations and the gender pay gap for UK graduates," Royal Economic Society Annual Conference 2003 42, Royal Economic Society. [Downloadable!]
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  11. Preston, Alison, 1997. "Where Are We Now with Human Capital Theory in Australia?," The Economic Record, The Economic Society of Australia, vol. 73(220), pages 51-78, March.
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