On the effects of schooling vintage on experience-earnings profiles: Theory and evidence

Shoshana Neuman, Avi Weiss

Research output: Contribution to journalArticlepeer-review

72 Scopus citations

Abstract

In this paper a distinction is made between human capital depreciation related to a worker's aging and depreciation due to the obsolescence of the worker's education. Schooling-specific obsolescence of human capital is incorporated in the Mincerian model of earnings, and it is shown how this obsolescence affects the worker's earnings profile. Using the Israeli 1983 Census we show that for 'high-tech' oriented industries (for which obsolescence is relatively important) obsolescence effects are more significant than for 'low-tech' oriented industries, and, consequently, the experience-earnings peak falls faster with increasing education in the former.

Original languageEnglish
Pages (from-to)943-955
Number of pages13
JournalEuropean Economic Review
Volume39
Issue number5
DOIs
StatePublished - May 1995

Keywords

  • Depreciation
  • Experience-earnings profiles
  • Human capital
  • Obsolescence
  • Vintage

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