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The Experience‐Earnings Profile in Australia

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  • JEFF BORLAND
  • ANTHONY SUEN

Abstract

This paper investigates the goodness‐of‐fit' and effect on estimates of the experience‐earnings profile of alternative specifications of the human capital earnings function for a sample of full‐time male workers in Australia. It is concluded that it is difficult to differentiate between specifications of the earnings function which include a cubic experience term, cubic plus quartic experience terms, or a linear spline function in experience–each of these specifications appears to marginally dominate the quadratic specification and a non‐parametric approach. A modified Gompertz function is found to perform poorly.

Suggested Citation

  • Jeff Borland & Anthony Suen, 1994. "The Experience‐Earnings Profile in Australia," The Economic Record, The Economic Society of Australia, vol. 70(208), pages 44-55, March.
    • Handle: RePEc:bla:ecorec:v:70:y:1994:i:208:p:44-55
    DOI: 10.1111/j.1475-4932.1994.tb01824.x
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    References listed on IDEAS

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    1. Kevin M. Murphy & Finis Welch, 1992. "The Structure of Wages," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(1), pages 285-326.
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    6. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1.
    7. repec:bla:ecorec:v:69:y:1993:i:204:p:20-33 is not listed on IDEAS
    8. Paul Miller & Paul Volker, 1993. "Youth Wages, Risk, and Tertiary Finance Arrangements," The Economic Record, The Economic Society of Australia, vol. 69(1), pages 20-33, March.
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    10. repec:bla:ecorec:v:61:y:1985:i:173:p:540-53 is not listed on IDEAS
    11. Paul W. Miller & Barry R. Chiswick, 1985. "Immigrant Generation and Income in Australia," The Economic Record, The Economic Society of Australia, vol. 61(2), pages 540-553, June.
    12. John J. Beggs & Bruce Chapman, 1991. "Male Immigrant Wage and Unemployment Experience in Australia," NBER Chapters, in: Immigration, Trade, and the Labor Market, pages 369-384, National Bureau of Economic Research, Inc.
    13. McNabb, Robert & Richardson, Sue, 1989. "Earnings, Education and Experience: Is Australia Different?," Australian Economic Papers, Wiley Blackwell, vol. 28(52), pages 57-75, June.
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    Cited by:

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    2. Le, Anh T. & Miller, Paul W. & Heath, Andrew C. & Martin, Nick, 2005. "Early childhood behaviours, schooling and labour market outcomes: estimates from a sample of twins," Economics of Education Review, Elsevier, vol. 24(1), pages 1-17, February.
    3. Ian W. Li & Paul W. Miller, 2015. "Overeducation and earnings in the Australian graduate labour market: an application of the Vahey model," Education Economics, Taylor & Francis Journals, vol. 23(1), pages 63-83, February.
    4. Miller, Paul & Mulvey, Charles & Martin, Nick, 2006. "The return to schooling: Estimates from a sample of young Australian twins," Labour Economics, Elsevier, vol. 13(5), pages 571-587, October.
    5. Grace Chia & Paul W Miller, 2007. "Tertiary Performance, Field of Study and Graduate Starting Salaries," Economics Discussion / Working Papers 07-12, The University of Western Australia, Department of Economics.
    6. Ather Akbari & Tomson Ogwang, 1997. "The Canadian earnings functions under test," Applied Economics Letters, Taylor & Francis Journals, vol. 4(2), pages 133-139.
    7. Satya Paul & Ahmad Assadzadeh, 2001. "Empirical earnings functions for Iran," Applied Economics, Taylor & Francis Journals, vol. 33(1), pages 11-21.

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