1 regression modeling and interpretation of results jacob mincer 1958
1. Regression modeling and interpretation of results. Jacob Mincer (1958) "Investment in
Human Capital and Personal Income Distribution", JPE 66, 281-302 spells a model of education
as an investment, where human capital H equals
H = AeBeduc
where educ is educational attainment, 3 is the return to an investment of the annual earnings
amount (that gives you an extra year of education, and so increases human capital), and A
includes all other factors influencing human capital. If one unit of H can be rented by a firm
at price P, a person with capital H gets wage H x P:
log (wage) = log P + Beduc + log A.
Using the data on workers' wages, education, experience, etc. from the Stata file wage1.dta
(taken from the 1976 Current Population Survey), run a regression of the logarithm of wage on
the education and tenure. Interpret and critically assess your results. Pay attention to possible
*The amount will be in form of wallet points that you can redeem to pay upto 10% of the price for any assignment. **Use of solution provided by us for unfair practice like cheating will result in action from our end which may include permanent termination of the defaulter’s account.Disclaimer:The website contains certain images which are not owned by the company/ website. Such images are used for indicative purposes only and is a third-party content. All credits go to its rightful owner including its copyright owner. It is also clarified that the use of any photograph on the website including the use of any photograph of any educational institute/ university is not intended to suggest any association, relationship, or sponsorship whatsoever between the company and the said educational institute/ university. Any such use is for representative purposes only and all intellectual property rights belong to the respective owners.