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An Alternative Theory of Upward Sloping Age-Earnings Profiles

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  • Shaffer, Sherrill L

Abstract

The commonly observed increase of wages with experience cannot be entirely explained by increases in individual productivity over time. Several possible explanations of this fact have been advanced in the literature; this paper presents another. The Samuelsonian model_(1975) of an unfunded social security system is adapted to show that, in an industry or sector with sufficient growth, there is an incentive for implicit transfers from junior or senior workers. Also discussed are possible market responses when growth rates turn negative. Copyright 1986 by Blackwell Publishers Ltd/University of Adelaide and Flinders University of South Australia

Suggested Citation

  • Shaffer, Sherrill L, 1986. "An Alternative Theory of Upward Sloping Age-Earnings Profiles," Australian Economic Papers, Wiley Blackwell, vol. 25(46), pages 118-121, June.
    • Handle: RePEc:bla:ausecp:v:25:y:1986:i:46:p:118-21
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