Abstract
The literature on the determinants of earnings suggest an earnings function for individual i which depends on age ai, year t, “vintage” or “cohort” schooling level si, and experience ei. Adopting a linear function to facilitate exposition we may write
where ei is experience, usually defined for males as age minus schooling, (ei = ai – si),1 and Yi may be any monotone transformation of earnings.
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Heckman, J., Robb, R. (1985). Using Longitudinal Data to Estimate Age, Period and Cohort Effects in Earnings Equations. In: Mason, W.M., Fienberg, S.E. (eds) Cohort Analysis in Social Research. Springer, New York, NY. https://doi.org/10.1007/978-1-4613-8536-3_5
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DOI: https://doi.org/10.1007/978-1-4613-8536-3_5
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