Christiansen, Charlotte (contributor); … - 2006
after
progressive taxation, the number should be smaller. Secondly, we use
annual income rather than hourly income …). The standard Mincer (1974) earnings equation is given as:
20 1 2 3ln i i i i iW S X Xα α α α ε= + + + + , (1 … observations of
working hours. Second, the residuals are calculated as:
20 1 2 3 4ˆ ˆ ˆ ˆ ˆlnijt ijt ijt ijt ijt jtW S X X Hε α …