We develop a dynamic model of learning and wage determination.
Education may convey initial information about ability, but subsequent
performance observations also are informative. Although the role of
schooling in the labor market's inference process declines as performance
observations accumulate,…

This paper examines the properties and prevalence of measurement
error in longitudinal earnings data. The analysis compares Current
Population Survey data to administrative Social Security payroll tax
records for a sample of heads of households over two years. In contrast