Mincer Earnings Function

The Mincer Earnings Function is an economic model that estimates how a person’s income is related to their education and work experience. It suggests that earnings tend to increase with years of schooling and work experience, but at a decreasing rate. In simple terms, more education and experience generally lead to higher pay, but the additional benefit from each extra year of schooling or experience lessens over time. This helps understand how investments in education and skills can influence a person's future earning potential.