In Jacob Mincer's seminal contribution Schooling, Experience and Earn- ing, the earnings function is estimated based...

 

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In Jacob Mincer's seminal contribution "Schooling, Experience and Earn- ing", the earnings function is estimated based on human capital. Mincer used American cross section data (Mincer (1974), p.92, Table 5.1): In Y = 6.20 +0.107 S; +0.081 E-0.0012 E, (72.3) (75.5) R = 0.285, (-55.8) Y annual earnings of individual i in 1959 Si - years of schooling Ei - professional experience: age - years of schooling - 6 The numbers in brackets denote t-values obtained by OLS estimation. There are 31.093 observations. (a) By how many percentage points will earnings increase with an addi- tional year of schooling? (b) At what age must an employee who went to school for 6 years anticipate a reduction in earnings? (c) Test the hypothesis that an employee with 20 years of experience has the highest wage. In Jacob Mincer's seminal contribution "Schooling, Experience and Earn- ing", the earnings function is estimated based on human capital. Mincer used American cross section data (Mincer (1974), p.92, Table 5.1): In Y = 6.20 +0.107 S; +0.081 E-0.0012 E, (72.3) (75.5) R = 0.285, (-55.8) Y annual earnings of individual i in 1959 Si - years of schooling Ei - professional experience: age - years of schooling - 6 The numbers in brackets denote t-values obtained by OLS estimation. There are 31.093 observations. (a) By how many percentage points will earnings increase with an addi- tional year of schooling? (b) At what age must an employee who went to school for 6 years anticipate a reduction in earnings? (c) Test the hypothesis that an employee with 20 years of experience has the highest wage.

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I see youve shared a regression equation and some questions related to it Lets address each question one by one a How many percentage points will earn... View the full answer