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Earnings Functions (earning + function)

Distribution by Scientific Domains

Business, Economics, Finance and Accounting	60%

Selected Abstracts

Convexity and Sheepskin Effects in the Human Capital Earnings Function: Recent Evidence for Filipino Men

OXFORD BULLETIN OF ECONOMICS & STATISTICS, Issue 2 2003
Norbert R. Schady
The issue of possible non-linearities in the relationship between log wages and schooling has received a good deal of attention in the literature. This paper uses data from a recent, high quality household survey for the Philippines, the 1998 Annual Poverty Indicator Survey (APIS), to test the fit of the log-linear specification for Filipino men. The results are based on a number of estimation strategies, including spline regressions, and semi-parametric regressions with a large number of dummies for years of schooling and experience. The basic conclusions of the paper are two. First, there appear to be large differences between the rates of return to education across levels in the Philippines. In particular, the returns to both primary and secondary education are lower than those for tertiary education, a difference which persists even after correcting for differences in direct private costs across levels. Second, within a given level, the last year of schooling is disproportionately rewarded in terms of higher wages. That is, there are clear sheepskin effects associated with graduation from primary school, secondary school, and university. [source]

Evolution of the Labor Market in a Regional City: The Changing Economic Performance of Emigrants from Mexico City,

JOURNAL OF REGIONAL SCIENCE, Issue 3 2005
Ricardo Sabates
Using labor-income trajectories of emigrants from Mexico City, the paper analyzes how the labor market in a regional city, Leon, evolves. Results from the econometric model suggest that migrants' labor-income trajectories differ between the large agglomeration and the regional city in an early stage of the evolution of the labor market, but converge in a later stage. Specifically, the slope of the earning function for recent migrants is steeper and statistically different from the slope for early migrants. The findings presented in this paper enrich the existing theory by providing microfoundations to a typically macroeconomic area of research and enable policy makers to better understand the processes underpinning the evolution of regional labor markets. [source]

CHANGES IN THE RELATIVE EARNINGS GAP BETWEEN NATIVES AND IMMIGRANTS ALONG THE U.S.-MEXICO BORDER,

JOURNAL OF REGIONAL SCIENCE, Issue 3 2008
Alberto Dávila
ABSTRACT Using 1990 and 2000 U.S. census data, this study investigates changes in immigrant/native earnings disparities for workers in U.S. cities along the international border with Mexico vis-à-vis the U.S. interior during the 1990s. Our findings,based on estimating earnings functions and employing the Juhn-Murphy-Pierce (1993, JPE) wage decomposition technique,indicate that the average earnings of Mexican immigrants along the U.S.-Mexico border improved relative to those accrued by their counterparts in the U.S. interior and by otherwise similar U.S.-born Mexican Americans between 1990 and 2000. However, when comparing Mexican-born workers to U.S.-born non-Hispanic whites, the immigrant border-earnings penalty remained statistically unchanged. [source]

A Cross-country Comparison of Attitudes Towards Mothers Working and their Actual Labor Market Experience

LABOUR, Issue 4 2000
James W. Albrecht
In this paper, we use data from the International Social Survey Project to present a cross-country comparison of attitudes about the labor force participation of mothers. We also estimate earnings functions and probits for full-time work and examine whether there is a link between attitudes and women's actual labor market experience across countries. We find that while a woman's own attitude about work does not directly influence her wage, it does influence the probability that she works full time. [source]

Movin' On Up: Interpreting The Earnings,Experience Profile

BULLETIN OF ECONOMIC RESEARCH, Issue 4 2000
Alan Manning
Human capital theory provides the generally accepted interpretation of the relationship between earnings and labour market experience, namely that general human capital tends to increase with experience. However, there are other plausible interpretations. Search models, for example, generally predict that more time in the labour market increases the chance of finding a better match and hence tends to be associated with higher earnings. This paper shows how a simple search model can be used to predict the amount of earnings growth that can be assigned to search with the residual being assigned to the human capital model. A substantial if not the larger part of the rise in earnings over the life-cycle in Britain can be explained by a simple search model, and virtually all the earnings gap between men and women can be explained in this way. Overall, the evidence suggests that we do need to reinterpret the returns to experience in earnings functions. [source]