Wages and Ageing: Is There Evidence for the 'Inverse-U' Profile?
AbstractHow individual wages change with time is one of the crucial determinants of labour market decisions including the timing of retirement. The focus of this paper is the relationship between age and wages with special attention given to individuals nearing retirement. The analysis is presented in a comparative context for Britain and Germany looking at two longitudinal data sets (BHPS and SOEP, respectively) for the years 1995-2004. We show the importance of cohort effects and selection out of employment which determine the downward-sloping part of the 'inverse-U' profile observed in cross-sections. There is little evidence that wages fall with age. Copyright (c) Blackwell Publishing Ltd and the Department of Economics, University of Oxford, 2010.
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Bibliographic InfoArticle provided by Department of Economics, University of Oxford in its journal Oxford Bulletin of Economics and Statistics.
Volume (Year): 72 (2010)
Issue (Month): 3 (06)
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Other versions of this item:
- Myck, Michal, 2007. "Wages and Ageing: Is There Evidence for the "Inverse-U" Profile?," IZA Discussion Papers 2983, Institute for the Study of Labor (IZA).
- Michal Myck, 2007. "Wages and Ageing: Is There Evidence for the "Inverse-U Profile"?," Discussion Papers of DIW Berlin 724, DIW Berlin, German Institute for Economic Research.
- J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
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