@techreport{publications32833,
          volume = {19-1041},
           month = {October},
          author = {Thierry Magnac and S{\'e}bastien Roux},
          series = {TSE Working Paper},
       booktitle = {TSE Working Paper},
            type = {Working Paper},
         address = {Toulouse},
           title = {Heterogeneity and wage inequalities over the life cycle},
       publisher = {TSE Working Paper},
            year = {2019},
     institution = {Universit{\'e} Toulouse 1 Capitole},
             url = {https://publications.ut-capitole.fr/id/eprint/32833/},
        abstract = {Using panel data from a single cohort of French male wage earners observed over a long span of 30 years starting at their entry in the labor market, we estimate parameters of a human capital investment model by random and fixed effect methods. Individual wage proles are described by their individual-specific level, slope and curvature. This allows a fine decomposition of the variance of (log-)wages at different times of the life-cycle and in the long run. Among salient results, short run time-varying inequalities are shown to be larger that long run inequality by a factor of 20\% to 80\%. Individual permanent heterogeneity explain between 60 to 90\% of the variance of wages. Single dimensional heterogeneity
explains well those variances at a point in time but not over the whole period or in the long run. Multidimensional heterogeneity is needed and in particular under the form of a horizon individual effect.}
}