Top Earners: a Labor Productivity Process

Claudio Campanale () and Rocio Fernandez-Bastidas ()
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Rocio Fernandez-Bastidas: Departamento de Fundamentos del Analisis Economico (FAE), Universidad de Alicante, Spain

No 74, Working papers from Department of Economics, Social Studies, Applied Mathematics and Statistics (Dipartimento di Scienze Economico-Sociali e Matematico-Statistiche), University of Torino

Abstract: In the present paper we confront standard wage processes used in the quantitative literature on the optimal tax progressivity and a process with heterogeneous life-cycle profiles that we propose against the data. We find that the former fail to capture several features of the earnings dynamics at the very top of the distribution while our proposed model improves along some of these dimensions.

Keywords: Top earners; Earnings Dynamics; Heterogeneous Income Growth (search for similar items in EconPapers)
JEL-codes: D31 E24 J24 J31 (search for similar items in EconPapers)
Pages: 12 pages
Date: 2022-05
New Economics Papers: this item is included in nep-dge, nep-mac and nep-pub
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https://www.bemservizi.unito.it/repec/tur/wpapnw/m74.pdf First version, 2022 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:tur:wpapnw:074

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