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Life Cycle Wage Growth across Countries

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  • David Lagakos
  • Benjamin Moll
  • Tommaso Porzio
  • Nancy Qian
  • Todd Schoellman

Abstract

This paper documents how life cycle wage growth varies across countries. We harmonize repeated cross-sectional surveys from a set of countries of all income levels and then measure how wages rise with potential experience. Our main finding is that experience-wage profiles are on average twice as steep in rich countries as in poor countries. In addition, more educated workers have steeper profiles than the less educated; this accounts for around one-third of cross-country differences in aggregate profiles. Our findings are consistent with theories in which workers in poor countries accumulate less human capital or face greater search frictions over the life cycle.

Suggested Citation

  • David Lagakos & Benjamin Moll & Tommaso Porzio & Nancy Qian & Todd Schoellman, 2018. "Life Cycle Wage Growth across Countries," Journal of Political Economy, University of Chicago Press, vol. 126(2), pages 797-849.
    • Handle: RePEc:ucp:jpolec:doi:10.1086/696225
    DOI: 10.1086/696225
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