Volume 28, Number 3 (Summer) 1993
Filer, Randall K. 1993. "The Usefulness of' Predicted Values for Prior Work Experience in Analyzing Labor Market Outcomes for Women." Journal of Human Resources 28(3):519-537.
This paper proposes an improved way of treating experience in estimating wage equations for women when measures of actual experience are lacking. It shows that using a predicted value for experience from occupation-specific equations estimated on another data set containing actual experience is preferable to using either potential experience (time since school leaving) or predicted experience without taking account of the women's occupation. Results also show that the use of potential experience may bias the estimated impact of factors such as race and schooling on women's wages.
Randall K. Filer is a professor of economics at Hunter College and the Graduate Center of the City University of New York. This research was supported by the National Science Foundation under Grant SES-8709498. Computer facilities were provided by the University Computer Center, the City University of New York. Thanks are due to Della Sue and Franco Pignataro for research assistance, Robert Kaestner for sharing data from the NLS-Y, and Cordelia Reimers for comments. All conclusions and errors remain, as usual, the responsibility of the author. The data used in this article can be obtained from the author from December 1993 through December 1996 at the Department of Economics, Hunter College, 695 Park Avenue, New York, NY 10021.
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