The effects of cohort size on European earnings
Abstract
I use the cross-country and time variation in the demographic structure of 11 European countries to study how changes in cohort size affect real earnings in Europe. This is an important question in the light of widespread population ageing. I find that cohort size has a negative and statistically significant effect on earnings, and that this effect is larger for the older age group - aged between 35 and 54 - than for the younger group - aged 20 to 34. I also find that earnings are more sensible to changes in cohort size in Southern Europe, which points to a lower degree of substitutability between individuals with the same education but different age. I argue that the uncovered lower substitutability in the Olive Belt of Europe is in line with the higher employment protection that its workers enjoy, at least compared to the workers located in Northern Europe. One important policy implication of this study is that the demographic shift away from the young and toward the old, a baby bust after a baby boom, is likely to tilt age - earnings profiles in favor of the young more in Southern than in Northern Europe.(This abstract was borrowed from another version of this item.)
Download Info
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic Info
Article provided by Springer in its journal Journal of Population Economics.
Volume (Year): 23 (2010)
Issue (Month): 1 (January)
Pages: 273-290
Contact details of provider:
Phone: +43-70-2468-8236
Fax: +43-70-2468-8238
Email:
Web page: http://link.springer.de/link/service/journals/00148/index.htm
More information through EDIRC
Order Information:
Web: http://link.springer.de/orders.htm
Related research
Keywords: Cohort size; Wages; Europe; J11; J31;Other versions of this item:
- Giorgio Brunello, 2007. "The Effects of Cohort Size on European Earnings," "Marco Fanno" Working Papers 0036, Dipartimento di Scienze Economiche "Marco Fanno".
- J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Olivier Blanchard & Francesco Giavazzi, 2003.
"Macroeconomic Effects Of Regulation And Deregulation In Goods And Labor Markets,"
The Quarterly Journal of Economics,
MIT Press, vol. 118(3), pages 879-907, August.
- Olivier Blanchard & Francesco Giavazzi, 2001. "Macroeconomic Effects of Regulation and Deregulation in Goods and Labor Markets," NBER Working Papers 8120, National Bureau of Economic Research, Inc.
- Olivier Blanchard & Francesco Giavazzi, . "Macroeconomic effects of regulation and deregulation in goods and labor markets," Working Papers 187, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Blanchard, Olivier J & Giavazzi, Francesco, 2001. "Macroeconomic Effects of Regulation and Deregulation in Goods and Labour Markets," CEPR Discussion Papers 2713, C.E.P.R. Discussion Papers.
- Wright, Robert E, 1991. "Cohort Size and Earnings in Great Britain," Journal of Population Economics, Springer, vol. 4(4), pages 295-305, November.
- Nickell, S. & Layard, R., 1997.
"Labour Market Institutions and Economic Performance,"
Papers
23, Centre for Economic Performance & Institute of Economics.
- Nickell, Stephen & Layard, Richard, 1999. "Labor market institutions and economic performance," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 46, pages 3029-3084 Elsevier.
- Richard Layard & Stephen Nickell, 1998. "Labour Market Institutions and Economic Performance," CEP Discussion Papers dp0407, Centre for Economic Performance, LSE.
- Stapleton, David C & Young, Douglas J, 1988. "Educational Attainment and Cohort Size," Journal of Labor Economics, University of Chicago Press, vol. 6(3), pages 330-61, July.
- Giuseppe Bertola & Francine Blau & Lawrence Kahn, 2007.
"Labor market institutions and demographic employment patterns,"
Journal of Population Economics,
Springer, vol. 20(4), pages 833-867, October.
- Giuseppe Bertola & Francine D. Blau & Lawrence M. Kahn, 2002. "Labor Market Institutions and Demographic Employment Patterns," NBER Working Papers 9043, National Bureau of Economic Research, Inc.
- Bertola, Giuseppe & Blau, Francine D & Kahn, Lawrence, 2002. "Labour Market Institutions and Demographic Employment Patterns," CEPR Discussion Papers 3448, C.E.P.R. Discussion Papers.
- Juan F. Jimeno & Diego Rodríguez-Palenzuela, .
"Youth unemployment in the OECD: Demographic shifts, labour market institutions, and macroeconomic shocks,"
Working Papers
2002-15, FEDEA.
- Diego Rodriguez-Palenzuela & Juan Francisco Jimeno-Serrano, 2002. "Youth unemployment in the OECD: demographic shifts; labour market institutions, and macroeconomic shock," Working Paper Series 155, European Central Bank.
- Juan F. Jimeno & Diego Rodríguez-Palenzuela, 2003. "Youth Unemployment in the OECD: Demographic Shifts, Labour Market Institutions and Macroeconomic Shocks," Economics Working Papers 019, European Network of Economic Policy Research Institutes.
- Franco Peracchi, 2002. "The European Community Household Panel: A review," Empirical Economics, Springer, vol. 27(1), pages 63-90.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Devereux, Paul J. & Fan, Wen, 2011.
"Earnings returns to the British education expansion,"
Economics of Education Review,
Elsevier, vol. 30(6), pages 1153-1166.
- Paul J Devereux & Wen Fan, 2011. "Earnings Returns to the British Education Expansion," Working Papers 201111, School Of Economics, University College Dublin.
- Budría, Santiago & Pereira, Pedro T., 2005.
"Educational Qualifications and Wage Inequality: Evidence for Europe,"
IZA Discussion Papers
1763, Institute for the Study of Labor (IZA).
- Budria, Santiago & Telhado-Pereira, Pedro, 2005. "Educational Qualifications and Wage Inequality: Evidence for Europe," MPRA Paper 91, University Library of Munich, Germany.
- Guido Schwerdt & Jarkko Turunen, 2007. "Changes in Human Capital: Implications for Productivity Growth in the Euro Area," Ifo Working Paper Series Ifo Working Paper No. 53, Ifo Institute for Economic Research at the University of Munich.
- Morin, Louis-Philippe, 2011. "Cohort Size and Youth Earnings: Evidence from a Quasi-Experiment," CLSRN Working Papers clsrn_admin-2011-28, UBC Department of Economics, revised 28 Nov 2011.
- Ernesto Friedrich de Lima Amaral & Joseph E. Potter & Daniel Hamermesh & Eduardo Rios Neto, 2013. "Age, education, and earnings in the course of Brazilian development: Does composition matter?," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 28(20), pages 581-612, March.
Lists
This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.Statistics
Access and download statisticsCorrections
When requesting a correction, please mention this item's handle: RePEc:spr:jopoec:v:23:y:2010:i:1:p:273-290For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.

