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Wage paths by cohort from 1967 to 2000

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  • Malik Koubi

    (INSEE)

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    Abstract

    Individual wage growth can be broken down into three elements: growth common to the entire economy (date effect), growth linked to the lifecycle (age effect) and growth specific to each cohort (cohort effect). The permanent wage rose from cohort to cohort through to the generations born in the early 1940s. Then it fell through to the cohort born in 1956. Since, the downturn in annual remuneration has been mainly due to the decrease in the number of days worked per year and the development of atypical forms of employment. The balance between age-related wage growth and the remuneration of new entrants disappeared for the generations born after 1950. These generations starting wages were lower, but this downturn was offset by faster wage growth at the start of their careers. This new balance is associated with greater differences between individual wage paths within each cohort.

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    File URL: http://www.insee.fr/fr/ffc/docs_ffc/ES369-370h.pdf
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    Bibliographic Info

    Article provided by Institut National de la Statistique et des Etudes Economiques in its journal Economie et Statistique.

    Volume (Year): 369-370 (2003)
    Issue (Month): (July)
    Pages: 149-171

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    Handle: RePEc:crs:ecosta:es369-370h

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    Related research

    Keywords: Wages; Carreers; Generations; Cohorts; Life Cycle; Age and Cohort Effects; Age Profiles of Earnings; Baby-Boom;

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