Tag

[potential_experience]

2 cards

Labour & employmentObservational Study
Actual vs. Potential Experience Bias
Traditional 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.
Labour & employmentObservational Study
Potential Experience Measurement Bias
Nonexperimental 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.