Finally, the
age-earnings profile for teachers would more closely resemble the profile for other professions.
The main prediction is that the
age-earnings profile for overeducated or undereducated workers is steeper than the profile for exactly educated workers.
However, Murphy and Welch (1990) note that the widely used Mincerian "human capital earnings function" provides a simple but poor approximation of the true empirical
age-earnings profile.
One may argue, however, that changes in earnings premium could be affected by changes in the
age-earnings profile across educational groups.
Generally, chart 5 seems to indicate a higher
age-earnings profile for female teachers compared to the female non-teachers.
One interesting attribute of female law graduate earnings is the relatively "steep"
age-earnings profile compared with other female professionals save M.
This implies that experience had a smaller effect on Muhajir earnings that it did on those from the other ethnic groups, AGE-SQUARED was negative and highly significant in all ethnic groups confirnung the concavity of the
age-earnings profile.
The approach that will be compared to the offset uses an
age-earnings profile to adjust earnings for each year.
Another way to view this differential is to simulate a synthetic
age-earnings profile for both U.
In contrast, a simple market-clearing model in which workers are always paid according to their current productivity (which is consistent with a rising
age-earnings profile if there is general human capital investment) doe s not provide any economic basis for opportunistic discharges of older workers.
The main reason behind the smooth
age-earnings profile of the public sector employees till age 60 is the relatively uniform pay scale system adopted by the government.
Second, an influential model of the
age-earnings profile seriously calls into question the virtue of age discrimination legislation, especially the prohibition of mandatory retirement.
