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Is the earnings-schooling relationship linear?

April 26, 2017linear relationship

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10 Posted

Is the earnings-schooling relationship linear?

1 Answer

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10 Posted

) (Graduate School of Economics, Kyoto University) 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. Download InfoTo download: If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.