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How well does a dynamic Mincer equation fit NLSY data? Evidence based on a simple wage-bargaining model

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  • Corrado Andini

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Abstract

This article argues that a dynamic Mincer equation can be seen as the solution of a simple wage-bargaining model between a worker and an employer where the unemployment-benefit level, affecting the outside option of the worker, depends on past wages. Further, it shows that this model provides a good fit of the US National Longitudinal Survey of Youth data. The evidence is robust to a number of sensitivity checks. Copyright Springer-Verlag 2013

Suggested Citation

  • Corrado Andini, 2013. "How well does a dynamic Mincer equation fit NLSY data? Evidence based on a simple wage-bargaining model," Empirical Economics, Springer, vol. 44(3), pages 1519-1543, June.
  • Handle: RePEc:spr:empeco:v:44:y:2013:i:3:p:1519-1543
    DOI: 10.1007/s00181-012-0581-5
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    References listed on IDEAS

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    Cited by:

    1. Massimiliano Agovino Author-Email: agovino.massimo@gmail.com & Antonio Garofalo Author-Email: antonio.garofalo@uniparthenope.it, 2016. "The Impact of Education on Wage Determination between Workers in Southern and Central-Northern Italy," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 63(1), pages 25-43, March.
    2. Marconi, Gabriele, 2015. "Dynamic returns to schooling by work experience," MPRA Paper 88073, University Library of Munich, Germany.
    3. 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].
    4. Moczall, Andreas, 2015. "The effect of hiring subsidies on regular wages," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113225, Verein für Socialpolitik / German Economic Association.
    5. Sebastian Kripfganz & Claudia Schwarz, 2019. "Estimation of linear dynamic panel data models with time‐invariant regressors," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 34(4), pages 526-546, June.
    6. 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).
    7. Kripfganz, Sebastian, 2014. "Unconditional Transformed Likelihood Estimation of Time-Space Dynamic Panel Data Models," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100604, Verein für Socialpolitik / German Economic Association.
    8. Kropfhäußer, Frieder & Sunder, Marco, 2013. "A weighty issue revisited: the dynamic effect of body weight on earnings and satisfaction in Germany," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79895, Verein für Socialpolitik / German Economic Association.
    9. Andini, Corrado, 2013. "Persistence Bias and the Wage-Schooling Model," IZA Discussion Papers 7186, Institute of Labor Economics (IZA).
    10. Andini, Corrado, 2014. "Persistence Bias and Schooling Returns," IZA Discussion Papers 8143, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Mincer equation; Wages; Human capital; Bargaining; I21; J31;
    All these keywords.

    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

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