ON THE EFFECTS OF SCHOOLING VINTAGE ON EXPERIENCE EARNINGS PROFILES -THEORY AND EVIDENCE

In this paper a distinction is made between human capital depreciation related to a worker's aging and depreciation due to the obsolescence of the worker's education. Schooling-specific obsolescence of human ca pital is incorporated in the Mincerian model of earnings, and it is sh own how this obsolescence affects the worker's earnings profile. Using the Israeli 1983 Census we show that for 'high-tech' oriented industr ies (for which obsolescence is relatively important) obsolescence effe cts are more significant than for 'low-tech' oriented industries, and, consequently, the experience-earnings peak falls faster with increasi ng education in the former.