The Impact of Higher Education, Job Experience, and Employment Sector on Earnings In Iran : Using The Mincer Model

Author
Zahra Afshari
.faculty member, kzahra. University
10.22034/irphe.1998.711712
Abstract
The aim of this article is to estimate the impact of higher education and job experience on individual's earnings in Iran. A production function approach, the Mincer Model, was used to estimate the parameters of the model. The logarithm of the earning is supposed to be a function of number of years attended higher education, and job experience. Considering Iranian labor market, two other dummy variables were created, one representing the employment sector (public or private), the other representing gender. The model was estimated using OLS. Results show 10.47 to 11.7 percent increase in earnings for each year in higher education. Every additional year on the job added 3.5 percent to the earnings. The relative importance of higher education attendance was greater than job experience. The role of employment sector was also very much significant, and individuals with same education and experience earned more in private sector. Gender was not a significant factor in estimating the earnings of the individuals with higher education. 

  • Receive Date 06 March 2024
  • Publish Date 22 November 1998