Baby Booming Inequality? Demographic Change and Earnings Inequality in Norway, 1967-2000

Ingvild Almås, Tarjei Havnes and Magne Mogstad

No 3200, CESifo Working Paper Series from CESifo

Abstract: In this paper, we demonstrate how age-adjusted inequality measures can be used to evaluate whether changes in inequality over time are due to changes in the age structure. To this end, we use administrative data on earnings for every male Norwegian during 1967-2000. We find that the substantial rise in earnings inequality over the 1980s and into the early 1990s, is to some extent driven by the fact that the large baby boom cohorts are approaching the peak of the age-earnings profile. We further demonstrate that the impact of age adjustments on the trend in inequality during the period from 1993-2000 is highly sensitive to the method used: while the most widely used age-adjusted inequality measure indicates little change in inequality over this period, a new and improved age-adjusted measure suggests a decline in inequality.

Keywords: inequality trend; age structure; age-earnings profile; Gini coefficient (search for similar items in EconPapers)
JEL-codes: D31 D63 D91 E21 (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Baby booming inequality? Demographic change and earnings inequality in Norway, 1967–2000 (2011)
Working Paper: Baby Booming Inequality? Demographic Change and Earnings Inequality in Norway, 1967-2000 (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_3200

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