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Empirical Economics

, Volume 44, Issue 3, pp 1519–1543 | Cite as

How well does a dynamic Mincer equation fit NLSY data? Evidence based on a simple wage-bargaining model

  • Corrado AndiniEmail author
Article

Abstract

This article argues that a dynamic Mincer equation can be seen as the solution of a simple wage-bargaining model between a worker and an employer where the unemployment-benefit level, affecting the outside option of the worker, depends on past wages. Further, it shows that this model provides a good fit of the US National Longitudinal Survey of Youth data. The evidence is robust to a number of sensitivity checks.

Keywords

Mincer equation Wages Human capital Bargaining 

JEL Classification

I21 J31 

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Copyright information

© Springer-Verlag 2012

Authors and Affiliations

  1. 1.Departamento de Gestão e EconomiaUniversidade da MadeiraFunchalPortugal
  2. 2.Centro de Estudos de Economia Aplicada do Atlântico (CEEAplA)Ponta DelgadaPortugal
  3. 3.Institute for the Study of Labor (IZA)BonnGermany

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