He focused mainly on education as a determinant of earnings because he viewed it as a primary and useful policy lever. His research emphasized the multiplicity of the attributes that determine labor income. In doing so, he pioneered the study of the equilibrium effects of demand and supply of vectors of attributes in determining earnings inequality. Tinbergen also examined the micro determinants of inequality. In modern jargon, Tinbergen went beyond “treatment effects” to investigate models that explain the mechanisms generating treatment effects and how they might be used to design effective policies. Throughout his career, he insisted that effective policy was possible and the design of policy required a deep understanding of the mechanisms that produced economic outcomes. His work on economic planning was an adjunct of this research. He sought to understand the aggregate forces that shape earnings and income. Footnote 1 This led him to conduct his pioneering work on macro models of the economy which is well-known and widely respected. The Great Depression spurred his interest in aggregate business cycle theory.

Underlying his research was an abiding interest in trying to make the world a better place. He used evidence-based science to design effective economic policies. He tested his theories against competing models. He developed and applied formal economic theories to explain and interpret a variety of economic data. Educated as a physicist, he applied his training in rigorous empirical science to study the economy. Jan Tinbergen was-and remains-a towering figure in economics.

Hedonic model