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Q2 In the application presented in this section, one of Jacob Mincer's specifications relating earnings to schooling and workplace experience is lnE=4.9+0.26S0.003S20.004XS+0.15X0.002X2. (a) What is

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Q2 In the application presented in this section, one of Jacob Mincer's specifications relating earnings to schooling and workplace experience is lnE=4.9+0.26S0.003S20.004XS+0.15X0.002X2. (a) What is the partial derivative of the logarithm of earnings with respect to experience, lnE/X ? (b) What is the percentage impact on earnings due to a one year increase in experience if S=20 and X=5 ? (c) What is the impact on the dollar value of earnings due to a one year increase in experience if S=20 and X=5 ? (d) What is the percentage impact on earnings due to an increase in experience of 1% if S=20 and X=5 ? (e) Does this specification exhibit diminishing marginal returns to earnings with regard to experience

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