Empirical Age-Earnings Profiles.
The "human capital earnings function," in which earnings are expressed as a quadratic in potential experience, is probably the most widely accepted empirical specification in economics. In spite of its widespread acceptance, the human capital earnings function provides a very poor approximation of the true empirical relationship between earnings and experience. The standard formulation understates early career earnings growth by about 30 percent-50 percent and overstates midcareer growth by 20 percent-50 percent. However, simple alternative specifications that fit the data are available. Copyright 1990 by University of Chicago Press.
Year of publication: |
1990
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Authors: | Murphy, Kevin M ; Welch, Finis |
Published in: |
Journal of Labor Economics. - University of Chicago Press. - Vol. 8.1990, 2, p. 202-29
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Publisher: |
University of Chicago Press |
Saved in:
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