CEDS UNPAD

Earning Motivation and The Conventional Earning Function

People have different motivation for having a paid job, and this might came from different expectation, value and also gender roles. Nevertheless, most analysis of earning determinant has neglected this possibility. Using data from Household, Income and Labour Dynamics (HILDA) in Australia in 2001 and 2004, this paper investigates the structure of human capital earning equation and its stability after controlling for earning motivation. The results suggest that some measure of earning motivation have effects. However, even after controlling for earning motivation, the returns to schooling and experience do not change significantly. This suggests that the conventional earning function is stable and robust with respect to the influences of earning motivation.

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Center for Economics and Development Studies is a research center under the Department of Economics, Padjadjaran University, Indonesia. A leading research institute in Indonesia in the area of economics and development studies.
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