Earnings Comparisons between Generations: Some Alternative Approaches
This paper examines alternative procedures for estimating Galtonian "regression towards the mean" in the earnings of fathers and sons. A simple life-cycle adjustment, based on an age-earnings profile, is inadequate because of the variation in ages and the fact that the dispersion varies with age. The use of standardized earnings is recommended. When information about earnings profiles for occupations is available, the use of earnings adjusted to a common age is explored, along with the use of an estimate of "lifetime earnings." In each case, differences between cross-sectional and cohort earnings profiles are examined. The alternative approaches are illustrated using data from A. L. Bowley's Measurement of Social Phenomena. Copyright 1988 by Blackwell Publishers Ltd and The Victoria University of Manchester
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Volume (Year): 56 (1988)
Issue (Month): 3 (September)
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