The Use of Linear Regression in Labour Economics

Stephen Bazen

in Econometric Methods for Labour Economics

Published in print September 2011 | ISBN: 9780199576791
Published online January 2012 | e-ISBN: 9780191731136 | DOI:

Series: Practical Econometrics

The Use of Linear Regression in Labour Economics

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While econometric techniques have become increasingly sophisticated, regression analysis in one form or another continues to be a major tool in empirical studies. Linear regression is also important in the way it serves as a reference for other techniques — it is usually the failure of the conditions that justify the application of linear regression that give rise to alternative methods. Furthermore, many more complicated techniques often contain elements of linear regression or modifications of it. This chapter discusses the use of linear regression and related methods in labour economics. It begins with a review of some useful results on the linear regression model. It then covers specification issues in the linear model and the Mincer earnings equation.

Keywords: linear regression model; specification issues; Mincer earnings equation; labour economics

Chapter.  13005 words.  Illustrated.

Subjects: Econometrics and Mathematical Economics

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