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Returns to education and wage equations: a dynamic approach

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  • Corrado Andini

Abstract

We study the impact of education on within-groups wage inequality using quantile-regression techniques and US data for the period 1980 to 1987. Our contribution consists of comparing estimates based on a standard Mincer equation with estimates based on a modified Mincer equation in which past earnings play the role of additional explanatory variable. We find that a dynamic model does not give the same answer as a static model regarding the impact of schooling on earnings dispersion, and provide an explanation for this result.

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Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

Volume (Year): 14 (2007)
Issue (Month): 8 ()
Pages: 577-579

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Handle: RePEc:taf:apeclt:v:14:y:2007:i:8:p:577-579
DOI: 10.1080/13504850500461555
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Cited by:

  1. Kripfganz, Sebastian, 2014. "Unconditional Transformed Likelihood Estimation of Time-Space Dynamic Panel Data Models," Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100604, Verein für Socialpolitik / German Economic Association.
  2. Karolina Goraus & Joanna Tyrowicz, 2013. "The Goodwill Effect? Female Access to the Labor Market Over Transition: A Multicountry Analysis," Working Papers 2013-19, Faculty of Economic Sciences, University of Warsaw.
  3. Andini, Corrado & Pereira, Pedro T., 2007. "Full-time Schooling, Part-time Schooling, and Wages: Returns and Risks in Portugal," IZA Discussion Papers 2651, Institute for the Study of Labor (IZA).
  4. Savina Finardi & Jakub Fischer & Petr Mazouch, 2012. "Odhad míry návratnosti investic do vysokoškolského vzdělání podle oborů, pohlaví a regionů
    [The Estimation of Internal Rates of Return on Human Capital Investment Differenced by Study Fields, Sex a    ," Politická ekonomie, University of Economics, Prague, vol. 2012(5), pages 563-589.
  5. Andini, Corrado, 2013. "Persistence Bias and the Wage-Schooling Model," IZA Discussion Papers 7186, Institute for the Study of Labor (IZA).
  6. Kripfganz, Sebastian & Schwarz, Claudia, 2013. "Estimation of Linear Dynamic Panel Data Models with Time-Invariant Regressors," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79756, Verein für Socialpolitik / German Economic Association.
  7. Andini, Corrado, 2009. "How Fast Do Wages Adjust to Human-Capital Productivity? Dynamic Panel-Data Evidence from Belgium, Denmark and Finland," IZA Discussion Papers 4583, Institute for the Study of Labor (IZA).
  8. Corrado Andini, 2010. "Within-groups wage inequality and schooling: further evidence for Portugal," Applied Economics, Taylor & Francis Journals, vol. 42(28), pages 3685-3691.
  9. Corrado Andini, 2009. "Wage Bargaining and the (Dynamic) Mincer Equation," Economics Bulletin, AccessEcon, vol. 29(3), pages 1842-1849.
  10. Andersson, Roland & Nabavi Larijani, Pardis & Wilhelmsson, Mats, 2013. "The impact of vocational education and training on income in Sweden," Working Paper Series 13/4, Department of Real Estate and Construction Management & Centre for Banking and Finance (cefin), Royal Institute of Technology.
  11. Andini, Corrado, 2014. "Persistence Bias and Schooling Returns," IZA Discussion Papers 8143, Institute for the Study of Labor (IZA).
  12. Corrado Andini, 2010. "A dynamic Mincer equation with an application to Portuguese data," Applied Economics, Taylor & Francis Journals, vol. 42(16), pages 2091-2098.
  13. Karolina Goraus & Joanna Tyrowicz & Lucas van der Velde, 2017. "How (Not) to Make Women Work?," GRAPE Working Papers 1, GRAPE Group for Research in Applied Economics.
  14. 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.
  15. Biagetti, Marco & Scicchitano, Sergio, 2009. "Wage inequality and returns to schooling in Europe: a semi-parametric approach using EU-SILC data," MPRA Paper 19060, University Library of Munich, Germany.
  16. Joanna Tyrowicz & Lucas van der Velde, 2017. "When the opportunity knocks: large structural shocks and gender wage gaps," GRAPE Working Papers 2, GRAPE Group for Research in Applied Economics.

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