Assume that the following human capital earnings function has been estimated from a sample of workers: W = 1000 + 500 ·S+ 400 · EXP-10·EXP² where W = annual earnings, S = years of schooling completed,...

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Extracted text: Assume that the following human capital earnings function has been estimated from a sample of workers: W = 1000 + 500 ·S+ 400 · EXP-10·EXP² where W = annual earnings, S = years of schooling completed, and EXP = years of potential labor market experience (AGE-Schooling - 5). If the average worker in the sample is 35 years old, with 14 years of schooling, what are the sample estimated rates of return for schooling and experience? a. b. Based on the estimates above, illustrate the Experience-Earnings profiles (for EXP = 5 to 30) for the following education levels: HS graduates (S=12); College graduates (S=16). You may use increments of 5 for EXP.