The Distribution of Earnings Profiles in Longitudinal Data
NBER Working Paper No. 143
We take advantage of our longitudinal data to explore individual variation in the parameters of individual earnings functions. (1) For this purpose we fit an earnings function to each of the individual histories in the sample.(2) We then try to ascertain the extent to which the estimated variation in individual parameters helps in explaining the cross-sectional variation in earnings.(3) we further inquire into the relation between the individual parameters and a vector of personal characteristics, as well as(4) into indirect (via variables and parameters) and direct effects of these characteristics on earnings.
Published: Borjas, George J. and Mincer, Jacob. "The Distribution of Earnings Profilesin Longitudinal Data." Income Distribution and Economic Inequality, editedby Zvi Griliches. New York: Halsted Press, 1978.