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Are you experienced? British evidence on age-earnings profiles

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  • Helen Robinson

Abstract

Using UK data, evidence is provided that the widely used quadratic earnings function may fare badly as indicated by recent work in the USA. Using data from pooled time series of cross-sections from the General Household Survey the suitability of the quadratic specification alongside higher order polynomials is investigated on samples of men and, for the first time in work of this type, women working full-time. It is found that the quadratic specification understates earnings growth at low levels of experience, especially for those workers with few formal qualifications. The usage of higher order polynomials provides a better fit.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000082059
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 35 (2003)
Issue (Month): 9 ()
Pages: 1101-1115

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Handle: RePEc:taf:applec:v:35:y:2003:i:9:p:1101-1115

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  1. Wagner, Joachim & Lorenz, Wilhelm, 1988. "The earnings function under test," Economics Letters, Elsevier, vol. 27(1), pages 95-99.
  2. Murphy, Kevin M & Welch, Finis, 1990. "Empirical Age-Earnings Profiles," Journal of Labor Economics, University of Chicago Press, vol. 8(2), pages 202-29, April.
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Cited by:
  1. Cagri Seda Kumru & John Piggott, 2012. "Optimal Capital Income Taxation with Means-tested Benefits," Working Papers 201215, ARC Centre of Excellence in Population Ageing Research (CEPAR), Australian School of Business, University of New South Wales.
  2. Michal Myck & Gillian Paull, 2004. "The role of employment experience in explaining the gender wage gap," IFS Working Papers W04/16, Institute for Fiscal Studies.
  3. Cagri Seda Kumru & John Piggott, 2010. "Should Public Retirement Pensions Be Means-tested?," DEGIT Conference Papers c015_049, DEGIT, Dynamics, Economic Growth, and International Trade.

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