Earnings, Cohort Effects, and Inter‐Generational Inequality: Evidence From the Luxembourg Income Study

Michael Freedman

Review of Income and Wealth, 2024, vol. 70, issue 2, 278-290

Abstract: Research suggests that inequalities between generations are most pronounced in the conservative European welfare states. However, it is likely that across all advanced capitalist societies superior earnings opportunities and steady employment are pursued at a later age due to secular labor market trends. In this paper, I examine the variation in generational inequalities across different regimes using data from the Luxembourg Income Study (LIS). The repeated cross‐sectional data allow me to trace the generational changes in income for eight countries, using both Age Period Cohort (APC) and synthetic cohort models. My results suggest that for most countries, cohorts born after 1980 have experienced lower entry‐level earning opportunities, relative to cohorts born between 1960 and 1980. However, synthetic cohort models suggest that while recent generations have suffered from successively worse entry positions, they appear to be “catching up,” which suggests that permanent “scarring effects” to lifetime earnings may not be inevitable.

Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/roiw.12641

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:revinw:v:70:y:2024:i:2:p:278-290

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0034-6586

Access Statistics for this article

Review of Income and Wealth is currently edited by Conchita D'Ambrosio and Robert J. Hill

More articles in Review of Income and Wealth from International Association for Research in Income and Wealth Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().