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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
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Working Paper: Heterogeneity and Wage Inequalities over the Life Cycle (2021) Downloads
Working Paper: Heterogeneity and Wage Inequalities over the Life Cycle (2020) Downloads
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DOI: 10.1016/j.euroecorev.2021.103715

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European Economic Review is currently edited by T.S. Eicher, A. Imrohoroglu, E. Leeper, J. Oechssler and M. Pesendorfer

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