Heterogeneity and wage inequalities over the life cycle

Thierry Magnac and Sébastien Roux ()

European Economic Review, 2021, vol. 134, issue C

Abstract: Using data on French male wage workers observed over 30 years, we estimate by random and fixed effect methods a wage equation with pervasive heterogeneity. Individual wage profiles are derived from a human capital investment model and described by a level, a slope and a curvature. Among others, our empirical application delivers original results on issues like the Mincer dip, and the time-varying correlations between wage growth and levels, or between initial wages and growth. Static and long-run inequality indices can easily be compared and decomposed into their multidimensional components.

Keywords: Human capital investment; Inequality; Wage dynamics; Post-schooling wage growth; Random and fixed effects (search for similar items in EconPapers)
JEL-codes: C33 D91 I24 J24 J31 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Related works:
Working Paper: Heterogeneity and wage inequalities over the life cycle (2021)
Working Paper: Heterogeneity and Wage Inequalities over the Life Cycle (2021)
Working Paper: Heterogeneity and Wage Inequalities over the Life Cycle (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:134:y:2021:i:c:s0014292121000684

DOI: 10.1016/j.euroecorev.2021.103715

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