Changes across cohorts in wage returns to schooling and early work experiences

Journal Article (Academic article)

This paper investigates the wage returns to schooling and actual early work experiences and how these returns have changed over the past 20 years. Using the NLSY surveys, we develop and estimate a dynamic model of the joint schooling and work decisions that young men make in early adulthood and quantify how they affect wages using a generalized Mincerian specification. Our results highlight the need to account for dynamic selection and changes in composition when analyzing changes in wage returns. In particular, we find that ignoring the selectivity of accumulated work experiences results in overstatement of the returns to education.

Full Text

Duke Authors

Cited Authors

  • Ashworth, J; Hotz, VJ; Maurel, A; Ransom, T

Published Date

  • October 1, 2021

Published In

PubMed ID

  • 34898834

Pubmed Central ID

  • PMC8653972

International Standard Serial Number (ISSN)

  • 0734-306X

Digital Object Identifier (DOI)

  • 10.1086/711851