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Cohort Effects on Earnings Profiles: Evidence from Sweden

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Abstract

The cohort crowding literature suggests that the size of one´s generation, or cohort, has repercussions on the level and shape of one´s earnings profile. We estimate cohort size effects on earnings profiles and further assess whether these profiles are affected by the individuals´position in the Baby Boom. Using a rich individual based panel data set, we follow the Swedish Baby Boomers of the 1940´s and the following Baby Bust of the 1950´s from 1968 to 1999. Our results indicate that there are significant cohort effects on the earnings profile which are fairly consistent across gender but not across education levels. Large cohorts have a higher overall earnings level than small cohorts. Cohorts born in an upswing of a boom have a higher earnings level than cohorts born in a downswing. The effects on return to experience vary across education and experience levels.

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  • Dahlberg, Susanne & Nahum, Ruth-Aïda, 2003. "Cohort Effects on Earnings Profiles: Evidence from Sweden," Arbetsrapport 2003:3, Institute for Futures Studies.
    • Handle: RePEc:hhs:ifswps:2003_003
    Note: ISBN 91-89655-32-X
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    1. John Moffat & Duncan Roth, 2016. "The Cohort Size-Wage Relationship in Europe," LABOUR, CEIS, vol. 30(4), pages 415-432, December.
    2. Kellerborg, Klas & Wouterse, Bram & Brouwer, Werner & van Baal, Pieter, 2021. "Estimating the costs of non-medical consumption in life-years gained for economic evaluations," Social Science & Medicine, Elsevier, vol. 289(C).
    3. Westholm, Erik, 2004. "Modes of re-territorialisation. Spatial implications of regional competition politics in Sweden," Arbetsrapport 2004:4, Institute for Futures Studies.
    4. Zamac , Jovan, 2005. "Winners and Losers from a Demographic Shock under Different Intergenerational Transfer Schemes," Working Paper Series 2005:13, Uppsala University, Department of Economics.
    5. Skans, Oskar Nordstrom, 2005. "Age effects in Swedish local labor markets," Economics Letters, Elsevier, vol. 86(3), pages 419-426, March.
    6. Fertig, Michael & Schmidt, Christoph M. & Sinning, Mathias G., 2009. "The impact of demographic change on human capital accumulation," Labour Economics, Elsevier, vol. 16(6), pages 659-668, December.
    7. Fertig, Michael & Schmidt, Christoph M., 2003. "Gerontocracy in Motion? European Cross-Country Evidence on the Labor Market Consequences of Population Ageing," IZA Discussion Papers 956, Institute of Labor Economics (IZA).
    8. repec:zbw:rwidps:0008 is not listed on IDEAS
    9. Irene Mosca, 2009. "Population Ageing and the Labour Market: Evidence from Italy," LABOUR, CEIS, vol. 23(2), pages 371-395, June.
    10. Westholm, Erik, 2003. "Leaving Rurality Behind. Re-orientation of spatial policies in Sweden," Arbetsrapport 2003:12, Institute for Futures Studies.
    11. Thomas Aronsson & Sören Blomquist, 2008. "Redistribution and Provision of Public Goods in an Economic Federation," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 10(1), pages 125-143, February.
    12. Ström, Sara, 2005. "Childbearing and psycho-social work life conditions in Sweden 1991-2000," Arbetsrapport 2005:13, Institute for Futures Studies.
    13. Sören Blomquist & Vidar Christiansen, 2008. "Taxation and Heterogeneous Preferences," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 64(2), pages 218-244, June.
    14. Rydell, Ingrid, 2005. "Equity, Justice, Interdependence: Intergenerational Transfers and the Ageing Population," Arbetsrapport 2005:5, Institute for Futures Studies.
    15. Duvander, Ann-Zofie & Ferrarini, Tommy & Thalberg, Sara, 2005. "Swedish parental leave and gender equality - Achievements and reform challenges in a European perspective," Arbetsrapport 2005:11, Institute for Futures Studies.
    16. Bäckman, Olof, 2005. "Welfare States, Social Structure and the Dynamics of Poverty Rates. A comparative study of 16 countries, 1980-2000," Arbetsrapport 2005:7, Institute for Futures Studies.
    17. Thalberg, Sara, 2003. "Demographic Patterns in Europe. A review of Austria, Germany, The Netherlands, Estonia, Latvia, and Lithuania," Arbetsrapport 2003:8, Institute for Futures Studies.
    18. Michael Fertig & Christoph M. Schmidt, 2004. "Gerontocracy in Motion? – European Cross-Country Evidence on the Labor Market Consequences of Population Ageing," RWI Discussion Papers 0008, Rheinisch-Westfälisches Institut für Wirtschaftsforschung.
    19. Lundqvist, Torbjörn, 2005. "The Employers in the Swedish Model The Importance of Labour Market Competition and Organisation," Arbetsrapport 2005:2, Institute for Futures Studies.
    20. Kieron James Barclay, 2013. "Sex ratios at sexual maturity and longevity," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 29(31), pages 837-864.
    21. Blomquist, Sören & Christiansen, Vidar, 2004. "Welfare Enhancing Marginal Tax Rates: The Case of Publicly Provided Day Care," Arbetsrapport 2004:6, Institute for Futures Studies.
    22. Hong, Ying & Corman, Diana, 2005. "Women´s Return to Work after First Birth in Sweden during 1980-2000," Arbetsrapport 2005:19, Institute for Futures Studies.

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    More about this item

    Keywords

    Earnings profiles; Baby Boom; Cohort size;
    All these keywords.

    JEL classification:

    • 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

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