2010, Vol.13, No.1, pp.105-125
Non-minceranian approach based on the concept of human capital is
proposed and developed to explain empirical age-earnings profiles.
In the approach, specific individual human capital is assumed be a
self-contained and largely self-evolutionary essence
depending on personal abilities and parameters of
intertemporal decision-making in certain socio-economic
environment. Evolutionary equation for the process of formation of
specific individual human capital is proposed and solved. Of the
assumption that individual earnings is paid for economic utility
of amount of specific individual human capital the micro-level
model of individual earnings is derived. By use of statistical
averaging the macro-level model of aggregate earnings
profile is built and made the specification of two-variable linear
regression equation. The regression equation is tested on
empirical age-earnings data taken from the official statistics of
12 developed countries for the years 1990-2008 (more than 200 data
sets in total) to verify and to calibrate the macro-model. In all
tests, the found values of slope are statistically significant. The found values of
are not less than 0.954, and there is no first-order residual
autocorrelation. The findings presented in formulas, graphs and tables
are discussed.
Key words:
human capital, evolutionary equation, intertemporal decision-making, age-earnings profile,
economic utility, overlapping generations, statistic averaging, regression analysis, collective behavior
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