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Estimating historical wage profiles

Stanfors, Maria LU and Burnette, Joyce LU (2015) In Historical Methods 48(1). p.35-51
Abstract
In this article, researchers evaluate the empirical performance of the Mincer earnings equation, which has been the benchmark model for assessment of wage profiles since 1974. The analysis concerns workers in the manufacturing industry in three countries before 1900. The Mincer equation must be adjusted with respect to functional form in order to capture the wage profiles of past industrial workers. The quadratic spline consistently provides the best fit, while the standard quadratic produces misleading estimates of wage changes and gender wage gaps. These conclusions hold across contexts, for men and women, and for both age and experience profiles. The results have methodological relevance for estimating historical wage profiles and also... (More)
In this article, researchers evaluate the empirical performance of the Mincer earnings equation, which has been the benchmark model for assessment of wage profiles since 1974. The analysis concerns workers in the manufacturing industry in three countries before 1900. The Mincer equation must be adjusted with respect to functional form in order to capture the wage profiles of past industrial workers. The quadratic spline consistently provides the best fit, while the standard quadratic produces misleading estimates of wage changes and gender wage gaps. These conclusions hold across contexts, for men and women, and for both age and experience profiles. The results have methodological relevance for estimating historical wage profiles and also have implications for the assessment of gender wage gaps in the past. (Less)
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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
manufacturing industry, Mincer earnings function, nineteenth century, wage profiles
in
Historical Methods
volume
48
issue
1
pages
35 - 51
publisher
Heldref Publications
external identifiers
  • wos:000348840100003
  • scopus:84921740964
ISSN
0161-5440
DOI
10.1080/01615440.2014.947397
language
English
LU publication?
yes
id
cd73d51a-1783-497e-9c80-3083d36df17f (old id 4986366)
date added to LUP
2015-01-27 09:22:40
date last changed
2017-09-18 10:13:44
@article{cd73d51a-1783-497e-9c80-3083d36df17f,
  abstract     = {In this article, researchers evaluate the empirical performance of the Mincer earnings equation, which has been the benchmark model for assessment of wage profiles since 1974. The analysis concerns workers in the manufacturing industry in three countries before 1900. The Mincer equation must be adjusted with respect to functional form in order to capture the wage profiles of past industrial workers. The quadratic spline consistently provides the best fit, while the standard quadratic produces misleading estimates of wage changes and gender wage gaps. These conclusions hold across contexts, for men and women, and for both age and experience profiles. The results have methodological relevance for estimating historical wage profiles and also have implications for the assessment of gender wage gaps in the past.},
  author       = {Stanfors, Maria and Burnette, Joyce},
  issn         = {0161-5440},
  keyword      = {manufacturing industry,Mincer earnings function,nineteenth century,wage profiles},
  language     = {eng},
  number       = {1},
  pages        = {35--51},
  publisher    = {Heldref Publications},
  series       = {Historical Methods},
  title        = {Estimating historical wage profiles},
  url          = {http://dx.doi.org/10.1080/01615440.2014.947397},
  volume       = {48},
  year         = {2015},
}