Wage Bargaining and the (Dynamic) Mincer Equation
This paper shows that, if observed earnings are the result of employer-employee wage bargaining, under a set of specific assumptions, the standard static Mincer equation can be thought as a particular case of a dynamic wage equation. Particularly, we argue that the standard static Mincer equation is implicitly based on the hypothesis that the employee has full bargaining power, and provide (further) empirical evidence against this hypothesis.
|Date of creation:||Nov 2008|
|Date of revision:|
|Publication status:||published in: Economics Bulletin, 2009, 29 (3), 1846-1853|
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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Heckman, James J. & Lochner, Lance John & Todd, Petra E., 2003.
"Fifty Years of Mincer Earnings Regressions,"
IZA Discussion Papers
775, Institute for the Study of Labor (IZA).
- Taylor, John B., 1999.
"Staggered price and wage setting in macroeconomics,"
Handbook of Macroeconomics,
in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 15, pages 1009-1050
- John B. Taylor, 1998. "Staggered Price and Wage Setting in Macroeconomics," NBER Working Papers 6754, National Bureau of Economic Research, Inc.
- Corrado Andini, 2007. "Returns to education and wage equations: a dynamic approach," Applied Economics Letters, Taylor & Francis Journals, vol. 14(8), pages 577-579.
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