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Is the earnings-schooling relationship linear? a semiparametric analysis

Author

Listed:
  • Lawrence Dacuycuy

    (Graduate School of Economics, Kyoto University)

Abstract

Using data from Labor Force Surveys (LFS), this study implements additive models to analyze the impact of schooling on wages. It also uses the Sperlich, Tjostheim and Yang (2002) test to validate the existence of interaction terms. Results confirm that the earnings-schooling relationship exhibits convexity. However, the degree to which the said relationship is convex is materially affected by the presence of the interaction component in the additive wage function.

Suggested Citation

  • Lawrence Dacuycuy, 2005. "Is the earnings-schooling relationship linear? a semiparametric analysis," Economics Bulletin, AccessEcon, vol. 3(37), pages 1-8.
    • Handle: RePEc:ebl:ecbull:eb-05c10007
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    File URL: http://www.accessecon.com/pubs/EB/2005/Volume3/EB-05C10007A.pdf
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    References listed on IDEAS

    as
    1. Psacharopoulos, George, 1989. "Time trends of the returns to education: Cross-national evidence," Economics of Education Review, Elsevier, vol. 8(3), pages 225-231, June.
    2. Sperlich, Stefan & Tjøstheim, Dag & Yang, Lijian, 2002. "Nonparametric Estimation And Testing Of Interaction In Additive Models," Econometric Theory, Cambridge University Press, vol. 18(2), pages 197-251, April.
    3. Pagan,Adrian & Ullah,Aman, 1999. "Nonparametric Econometrics," Cambridge Books, Cambridge University Press, number 9780521586115.
    4. Psacharopoulos, George, 1977. "Schooling, experience and earnings : The case of an LDC," Journal of Development Economics, Elsevier, vol. 4(1), pages 39-48, February.
    5. Pagan,Adrian & Ullah,Aman, 1999. "Nonparametric Econometrics," Cambridge Books, Cambridge University Press, number 9780521355643.
    6. repec:eee:labchp:v:1:y:1986:i:c:p:525-602 is not listed on IDEAS
    7. Jacob A. Mincer, 1974. "Schooling and Earnings," NBER Chapters, in: Schooling, Experience, and Earnings, pages 41-63, National Bureau of Economic Research, Inc.
    8. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1.
    9. Bjorklund, Anders & Kjellstrom, Christian, 2002. "Estimating the return to investments in education: how useful is the standard Mincer equation?," Economics of Education Review, Elsevier, vol. 21(3), pages 195-210, June.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Dieter von Fintel, 2006. "Earnings bracket obstacles in household surveys – How sharp are the tools in the shed?," Working Papers 08/2006, Stellenbosch University, Department of Economics.
    2. Edita E. Tan & Kristine S. Canales & Kevin G. Cruz & Jan Carlo B. Punongbayan, 2011. "Why are Boys Falling Behind Girls in Schooling?," UP School of Economics Discussion Papers 201112, University of the Philippines School of Economics.

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    More about this item

    Keywords

    schooling;

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • I2 - Health, Education, and Welfare - - Education

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