Is the earnings-schooling relationship linear? A semiparametic analysis

College

School of Economics

Document Type

Article

Source Title

Economics Bulletin

Volume

3

Issue

37

First Page

1

Last Page

8

Publication Date

2005

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.

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Disciplines

Labor Economics

Keywords

Wages—Effect of education on

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