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Earnings persistence and schooling returns

Author

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  • Andini, Corrado

Abstract

The standard approach to the estimation of schooling returns disregards earnings persistence. Using longitudinal data for Belgian male workers (ECHP, 1994–2001), we show that earnings persistence matters.

Suggested Citation

  • Andini, Corrado, 2013. "Earnings persistence and schooling returns," Economics Letters, Elsevier, vol. 118(3), pages 482-484.
  • Handle: RePEc:eee:ecolet:v:118:y:2013:i:3:p:482-484
    DOI: 10.1016/j.econlet.2012.12.025
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    References listed on IDEAS

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    1. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters,in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
    2. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, July.
    3. Corrado Andini, 2010. "A dynamic Mincer equation with an application to Portuguese data," Applied Economics, Taylor & Francis Journals, vol. 42(16), pages 2091-2098.
    4. Fatih Guvenen, 2009. "An Empirical Investigation of Labor Income Processes," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 12(1), pages 58-79, January.
    5. Flannery, Mark J. & Rangan, Kasturi P., 2006. "Partial adjustment toward target capital structures," Journal of Financial Economics, Elsevier, vol. 79(3), pages 469-506, March.
    6. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Frieder Kropfhäußer & Marco Sunder, 2014. "A Weighty Issue Revisited: The Dynamic Effect of Body Weight on Earnings and Satisfaction in Germany," SOEPpapers on Multidisciplinary Panel Data Research 635, DIW Berlin, The German Socio-Economic Panel (SOEP).
    2. Kropfhäußer, Frieder & Sunder, Marco, 2013. "A weighty issue revisited: the dynamic effect of body weight on earnings and satisfaction in Germany," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79895, Verein für Socialpolitik / German Economic Association.
    3. Andini, Corrado, 2013. "Persistence Bias and the Wage-Schooling Model," IZA Discussion Papers 7186, Institute for the Study of Labor (IZA).
    4. Karlis Vilerts & Olegs Krasnopjorovs & Edgars Brekis, 2015. "Does Education Affect Wages During and After Economic Crisis? Evidence from Latvia (2006–2012)," Working Papers 2015/03, Latvijas Banka.
    5. repec:voj:journl:v:63:y:2016:i:1:p:25-43 is not listed on IDEAS
    6. Andini, Corrado, 2014. "Persistence Bias and Schooling Returns," IZA Discussion Papers 8143, Institute for the Study of Labor (IZA).
    7. Mirko Felchner, 2015. "Einkommensdynamik bei Selbständigen als Freie Berufe und abhängig Beschäftigte Eine dynamische Paneldatenschätzung mit Daten des Sozio-oekonomischen Panels," FFB-Discussionpaper 101, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
    8. Moczall, Andreas, 2015. "The effect of hiring subsidies on regular wages," IAB Discussion Paper 201501, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    9. Rietveld, Cornelius A. & Webbink, Dinand, 2016. "On the genetic bias of the quarter of birth instrument," Economics & Human Biology, Elsevier, vol. 21(C), pages 137-146.
    10. Moczall, Andreas, 2015. "The effect of hiring subsidies on regular wages," Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113225, Verein für Socialpolitik / German Economic Association.

    More about this item

    Keywords

    Mincer equation; Wages; Human capital; Dynamic panel-data models;

    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
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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