Individual Human Capitals, Collective Behavior, and Age-Earnings Profiles of Workers: an Alternative Rationale and New Path to Modeling.

Abstract

In the article, an improved macro-level model is presented. The improvement concerns statistic averaging -- more reasonable distribution (Weibull) of individual "social" ages at intertemporal decision-making is used to get the macro-model. Simple (linear) regression based on the macro-model's specification is used to fit large samples (more than 40 age points) of empirical age-earnings data (UK, 2002; Canada, 1973, 1984, 1994). The found estimates of the pre-supposed "social" ages of persons to switch back and forth their educational efforts during life span are quite reasonable as well as the gender differences "detected" by the macro-model in such behavior. Findings presented in formulae, tables and graphs demonstrate the developed model's high accuracy in the regressions - better than in the Minceranian log-linear regressions.