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Notes on Mincer's Log-Earnings Model

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  • Conlisk, John

Abstract

In his famous human capital model, Jacob Mincer provides assumptions under which a worker's annual log-earnings are a function of years of schooling and years of experience. The function has the important property, widely invoked in empirical studies, that its derivative with respect to schooling equals the rate of return to the schooling investment. It is shown here that some of Mincer's assumptions are not needed for the property to hold, but that other assumptions carry troublesome hidden implications. Copyright 1987 by Oxford University Press.

Suggested Citation

  • Conlisk, John, 1987. "Notes on Mincer's Log-Earnings Model," Economic Inquiry, Western Economic Association International, vol. 25(1), pages 165-174, January.
    • Handle: RePEc:oup:ecinqu:v:25:y:1987:i:1:p:165-74
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    Cited by:

    1. Mikaela Backman & Lina Bjerke, 2014. "Returns to higher education: a regional perspective," Chapters, in: Charlie Karlsson & Börje Johansson & Kiyoshi Kobayashi & Roger R. Stough (ed.), Knowledge, Innovation and Space, chapter 10, pages 237-264, Edward Elgar Publishing.

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