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IZA Discussion Paper No. 2897
July 2007
A Dynamic Mincer Equation with an Application to Portuguese Data
Corrado Andini

published in: Applied Economics, 2010, 42 (16), 2091-2098

This paper argues in favor of a dynamic specification of the Mincer equation, where past observed earnings play the role of additional explanatory variable for current observed earnings. A dynamic approach offers an explanation why the return to schooling in terms of observed earnings is not independent of labor-market experience, as suggested by some recent empirical evidence for the United States.

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