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

Almås, Ingvild, Magne Mogstad and Tarjei Havnes
Authors registered in the RePEc Author Service: Ingvild Almås

No 8393, CEPR Discussion Papers from C.E.P.R. Discussion Papers

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 over the period 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 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 suggest 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: 2011-05
New Economics Papers: this item is included in nep-age and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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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 (2010)
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