Mincer's Overtaking Point and the Lifecycle Earnings Distribution

Solomon Polachek

No 865, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In 1958 Jacob Mincer pioneered an important approach to understand earnings distribution. In the years since Mincer’s seminal work, he as well as his students and colleagues extended the original human capital model, reaching important conclusions about a whole array of observations pertaining to human wellbeing. This line of research explained why education enhances earnings; why earnings rise at a diminishing rate throughout one’s life; why earnings growth is smaller for those anticipating intermittent labor force participation; why men earn more than women; why whites earn more than blacks; why occupational distributions differ by gender; why geographic and job mobility predominate among the young; why unemployment is lower among the skilled; and why numerous other labor market phenomena occur. This paper surveys the answers to these and other questions based on research emanating from Mincer’s original discovery. In addition, this paper provides new empirical evidence regarding Mincer’s concept of the “overtaking age” – a topic not currently well explored in the literature. In this latter vein, the paper shows that Mincer’s original finding of a U-shaped (log) variance of earnings over the life cycle is upheld in recent data, both for the U.S. as well as at least seven other countries.

Keywords: overtaking age; earnings; human capital; wellbeing; Mincer (search for similar items in EconPapers)
JEL-codes: B20 B31 D31 J24 J31 J33 J41 J6 J7 (search for similar items in EconPapers)
Pages: 48 pages
Date: 2003-08
New Economics Papers: this item is included in nep-lab and nep-ltv
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Published - published in: Review of Economics of the Household, 2003, 1 (4), 273-304

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Related works:
Journal Article: Mincer's Overtaking Point and the Life Cycle Earnings Distribution (2003)
Working Paper: Mincer s Overtaking Point on the Lifecycle Earnings Distribution (2002)
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