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Supporting empirical evidence is also presented.<\/jats:p><\/jats:sec><jats:sec><jats:title content-type=\"abstract-subheading\">Findings<\/jats:title><jats:p>Disregarding the persistence of current earnings implies a bias in the estimation of the wage return to schooling both at labour-market entry and in the rest of the working life.<\/jats:p><\/jats:sec><jats:sec><jats:title content-type=\"abstract-subheading\">Research limitations\/implications<\/jats:title><jats:p>The use of current earnings as a dependent variable in wage-schooling models may be problematic and requires specific handling.<\/jats:p><\/jats:sec><jats:sec><jats:title content-type=\"abstract-subheading\">Social implications<\/jats:title><jats:p>The impact of schooling on the between-groups dimension of wage inequality may be different than previously thought.<\/jats:p><\/jats:sec><jats:sec><jats:title content-type=\"abstract-subheading\">Originality\/value<\/jats:title><jats:p>The paper is the first to show that, when current earnings are used as a dependent variable, the identification of a wage-schooling model with the standard (time-invariant external instrument-variable) approach may lead to misleading conclusions.<\/jats:p><\/jats:sec>","DOI":"10.1108\/jes-12-2022-0630","type":"journal-article","created":{"date-parts":[[2023,6,28]],"date-time":"2023-06-28T13:38:45Z","timestamp":1687959525000},"page":"319-337","source":"Crossref","is-referenced-by-count":0,"title":["Current earnings, persistence and\u00a0schooling returns"],"prefix":"10.1108","volume":"51","author":[{"ORCID":"https:\/\/orcid.org\/0000-0002-4303-9402","authenticated-orcid":false,"given":"Corrado","family":"Andini","sequence":"first","affiliation":[]},{"ORCID":"https:\/\/orcid.org\/0000-0003-0216-9785","authenticated-orcid":false,"given":"Jos\u00e9 Eus\u00e9bio","family":"Santos","sequence":"additional","affiliation":[]}],"member":"140","published-online":{"date-parts":[[2023,6,26]]},"reference":[{"issue":"2","key":"key2024021514290181100_ref001","doi-asserted-by":"crossref","first-page":"217","DOI":"10.1007\/s00355-014-0838-3","article-title":"Inequality in current and lifetime income","volume":"44","year":"2015","journal-title":"Social Choice and Welfare"},{"issue":"2","key":"key2024021514290181100_ref002","doi-asserted-by":"crossref","first-page":"411","DOI":"10.2307\/1912561","article-title":"On the covariance structure of earnings and hours changes","volume":"57","year":"1989","journal-title":"Econometrica"},{"issue":"4","key":"key2024021514290181100_ref003","doi-asserted-by":"crossref","first-page":"1395","DOI":"10.3982\/ECTA8415","article-title":"Modeling earnings dynamics","volume":"81","year":"2013","journal-title":"Econometrica"},{"issue":"8","key":"key2024021514290181100_ref004","doi-asserted-by":"crossref","first-page":"577","DOI":"10.1080\/13504850500461555","article-title":"Returns to education and wage equations: a dynamic approach","volume":"14","year":"2007","journal-title":"Applied Economics Letters"},{"issue":"3","key":"key2024021514290181100_ref005","first-page":"1846","article-title":"Wage bargaining and the (dynamic) Mincer equation","volume":"29","year":"2009","journal-title":"Economics Bulletin"},{"issue":"16","key":"key2024021514290181100_ref006","doi-asserted-by":"crossref","first-page":"2091","DOI":"10.1080\/00036840701765429","article-title":"A dynamic Mincer equation with an application to Portuguese data","volume":"42","year":"2010","journal-title":"Applied Economics"},{"issue":"3","key":"key2024021514290181100_ref007","doi-asserted-by":"crossref","first-page":"1519","DOI":"10.1007\/s00181-012-0581-5","article-title":"How well does a dynamic Mincer equation fit NLSY data? 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