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 language | English |
|---|---|
| Pages (from-to) | 943-955 |
| Number of pages | 13 |
| Journal | European Economic Review |
| Volume | 39 |
| Issue number | 5 |
| DOIs | |
| State | Published - May 1995 |
Keywords
- Depreciation
- Experience-earnings profiles
- Human capital
- Obsolescence
- Vintage