Tag
[potential_experience]
2 findings
Labour & employmentActual vs. Potential Experience BiasTraditional potential experience formulas understate experience payoffs, whereas tracking actual 5-day work experience demonstrates an average daily wage increase of $3.83 to $4.19 (an approximate 80% daily wage increase, p < 0.05), which equals nearly 10 years of potential experience in non-experimental Malawian estimates.Observational StudyLabour & employmentPotential Experience Measurement BiasNonexperimental wage returns relying on potential experience proxies require approximately 10 years of estimated potential experience in Malawi to match the wage gain produced by 5 days of actual measured work experience, demonstrating that potential experience drastically underestimates true per-day returns while overstating accumulated work history.Observational Study