Earnings Functions, Rates of Return and Treatment Effects: The Mincer Equation and Beyond /
Heckman, James J.
Earnings Functions, Rates of Return and Treatment Effects: The Mincer Equation and Beyond / James J. Heckman, Lance J. Lochner, Petra E. Todd. - Cambridge, Mass. National Bureau of Economic Research 2005. - 1 online resource: illustrations (black and white); - NBER working paper series no. w11544 . - Working Paper Series (National Bureau of Economic Research) no. w11544. .
August 2005.
This paper considers the interpretation of "Mincer rates of return." We test and reject the Mincer model. It fails to track the time series of true returns. We show how repeated cross section and panel data improves the ability of analysts to estimate the ex ante and ex post marginal rate of returns. Accounting for sequential revelation of information calls into question the validity of the internal rate of return as a tool for policy analysis. The large estimated psychic costs of schooling found in recent work helps to explain why persons do not attend school even though the financial rewards for doing so are high. We present methods for computing distributions of ex post and ex ante returns.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.
Earnings Functions, Rates of Return and Treatment Effects: The Mincer Equation and Beyond / James J. Heckman, Lance J. Lochner, Petra E. Todd. - Cambridge, Mass. National Bureau of Economic Research 2005. - 1 online resource: illustrations (black and white); - NBER working paper series no. w11544 . - Working Paper Series (National Bureau of Economic Research) no. w11544. .
August 2005.
This paper considers the interpretation of "Mincer rates of return." We test and reject the Mincer model. It fails to track the time series of true returns. We show how repeated cross section and panel data improves the ability of analysts to estimate the ex ante and ex post marginal rate of returns. Accounting for sequential revelation of information calls into question the validity of the internal rate of return as a tool for policy analysis. The large estimated psychic costs of schooling found in recent work helps to explain why persons do not attend school even though the financial rewards for doing so are high. We present methods for computing distributions of ex post and ex ante returns.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.