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Lifetime Earnings in the United States over Six Decades

Author

Listed:
  • Fatih Guvenen
  • Greg Kaplan
  • Jae Song
  • Justin Weidner

Abstract

Between the 1957 and 1983 labor market entry cohorts, median lifetime earnings declined by 10–19 percent for men and increased by 22–33 percent for women, albeit relative to very low median lifetime earnings for the early cohorts. The difference between newer and older cohorts comes from differences in median earnings at the time of labor market entry. Inequality in lifetime earnings has increased significantly within each gender group, but the closing lifetime gender gap has kept overall lifetime inequality flat. The increase among men is largely attributable to subsequent cohorts entering the labor market with progressively higher levels of inequality.

Suggested Citation

  • Fatih Guvenen & Greg Kaplan & Jae Song & Justin Weidner, 2022. "Lifetime Earnings in the United States over Six Decades," American Economic Journal: Applied Economics, American Economic Association, vol. 14(4), pages 446-479, October.
    • Handle: RePEc:aea:aejapp:v:14:y:2022:i:4:p:446-79
    DOI: 10.1257/app.20190489
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    Citations

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    Cited by:

    1. Richard Audoly & Rory McGee & Sergio Ocampo & Gonzalo Paz-Pardo, 2024. "The Life-Cycle Dynamics of Wealth Mobility," Staff Reports 1097, Federal Reserve Bank of New York.
    2. Richard Blundell & Christopher Bollinger & Charles Hokayem & James P. Ziliak, 2024. "Interpreting cohort profiles of lifecycle earnings volatility," IFS Working Papers W24/14, Institute for Fiscal Studies.
    3. Alexander Bick & Adam Blandin & Richard Rogerson, 2024. "Hours Worked and Lifetime Earnings Inequality," NBER Working Papers 32997, National Bureau of Economic Research, Inc.

    More about this item

    JEL classification:

    • D15 - Microeconomics - - Household Behavior - - - Intertemporal Household Choice; Life Cycle Models and Saving
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions

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