Born to Run Behind? Persistent Relative Age Effects on Earnings
AbstractThe relative age effect is an established phenomenon in the literature, but estimates of its strength and duration vary. In order to study the economic magnitude of the effect, we use Norwegian registry data to investigate how birth month affects earnings throughout the full course of life for all Norwegian males born during the period 1940-1949. We examine earnings from 20 to 68 years of age. Our findings suggest that the youngest within a cohort have a relative age disadvantage in early career years that translates into a relative age advantage during late career years. When observing non-discounted life earnings, we find that the two effects cancel out and leave no relative age imprint on life earnings.
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Bibliographic InfoPaper provided by University of Stavanger in its series UiS Working Papers in Economics and Finance with number 2012/10.
Length: 27 pages
Date of creation: 30 May 2012
Date of revision:
Birth date effects; life earnings;
Find related papers by JEL classification:
- C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
- D03 - Microeconomics - - General - - - Behavioral Microeconomics; Underlying Principles
- I20 - Health, Education, and Welfare - - Education - - - General
- J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-07-23 (All new papers)
- NEP-DEM-2012-07-23 (Demographic Economics)
- NEP-LMA-2012-07-23 (Labor Markets - Supply, Demand, & Wages)
Please 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.:
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