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Magnac, Thierry
and Roux, Sébastien
(2019)
Heterogeneity and wage inequalities over the life cycle.
TSE Working Paper, n. 19-1041, Toulouse
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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.
| Item Type: | Monograph (Working Paper) |
|---|---|
| Language: | English |
| Date: | October 2019 |
| Place of Publication: | Toulouse |
| JEL Classification: | C33 - Models with Panel Data D91 - Intertemporal Consumer Choice; Life Cycle Models and Saving J24 - Human Capital; Skills; Occupational Choice; Labor Productivity J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc. |
| Subjects: | B- ECONOMIE ET FINANCE |
| Divisions: | TSE-R (Toulouse) |
| Institution: | Université Toulouse 1 Capitole |
| Site: | UT1 |
| Date Deposited: | 10 Oct 2019 08:54 |
| Last Modified: | 20 May 2021 10:06 |
| OAI Identifier: | oai:tse-fr.eu:123621 |
| URI: | https://publications.ut-capitole.fr/id/eprint/32833 |
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