Lifecycle Wages and Human Capital Investments: Selection and Missing Data

Laurent Gobillon, Thierry Magnac and Sébastien Roux ()

No 22-1299, TSE Working Papers from Toulouse School of Economics (TSE)

Abstract: We derive wage equations with individual specic coe¢ cients from a structural model of human capital investments over the life-cycle. This model allows for interruptions in labor market participation, and addresses missing data and attrition issues. We further control for selection in a exible way by using interactive e¤ects. Estimation is based on long administrative panel data of male wages in the private sector in France. A structural function approach shows that interruptions negatively a¤ect average wages. More surprisingly, they also negatively a¤ect the inter-decile range of wages after twenty years, and this is due to interruptions being endogeneous. These results question the popular Missing At Random assumption that is made when assessing the building up of wage inequalities over the life cycle.

Keywords: Human capital investment; wage inequalities; factor models; missing data (search for similar items in EconPapers)
JEL-codes: C38 D91 I24 J24 J31 (search for similar items in EconPapers)
Date: 2022-02
New Economics Papers: this item is included in nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www.tse-fr.eu/sites/default/files/TSE/docu ... 2022/wp_tse_1299.pdf Full Text (application/pdf)

Related works:
Working Paper: Lifecycle Wages and Human Capital Investments: Selection and Missing Data (2022)
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:tse:wpaper:126574

Access Statistics for this paper

More papers in TSE Working Papers from Toulouse School of Economics (TSE) Contact information at EDIRC.
Bibliographic data for series maintained by ().