Earnings mobility and distribution: Comparing statistical models on Swedish data
There are at least two instrumental motives for studying earnings mobility. First, to extend the analysis of income distribution to more than one time period. Second, to predict future individual earnings. For both these motives, adequate models of earnings mobility are needed. This study compares the usefulness of different statistical models (human capital and stochastic models), previously used to estimate earnings mobility, in predicting future individual earnings and earnings distributions. Special attention is given to the effect of considering individual heterogeneity. A 20- year panel, collected from the Swedish Level of Living Survey, of 651 employed men is used. The models are estimated on 17 periods and predictions are made for 3. It is found that a dynamic human capital model gives the best predictions of individual earnings.
(This abstract was borrowed from another version of this item.)
References listed on IDEAS
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.:
- Creedy, John, 1980. "The New Government Pension Scheme: A Simulation Analysis," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 42(1), pages 51-64, February.
- Lillard, Lee A & Willis, Robert J, 1978.
"Dynamic Aspects of Earning Mobility,"
Econometric Society, vol. 46(5), pages 985-1012, September.
- Lee A. Lillard & Robert J. Willis, 1976. "Dynamic Aspects of Earnings Mobility," NBER Working Papers 0150, National Bureau of Economic Research, Inc.
- Murphy, Kevin M & Welch, Finis, 1990. "Empirical Age-Earnings Profiles," Journal of Labor Economics, University of Chicago Press, vol. 8(2), pages 202-229, April.
- Lillard, Lee A, 1977. "Inequality: Earnings vs. Human Wealth," American Economic Review, American Economic Association, vol. 67(2), pages 42-53, March.
- Lee A. Lillard, 1975. "Inequality: Earnings vs. Human Wealth," NBER Working Papers 0080, National Bureau of Economic Research, Inc.
- Creedy, J & Hart, P E, 1979. "Age and the Distribution of Earnings," Economic Journal, Royal Economic Society, vol. 89(354), pages 280-293, June.
- Creedy, John, 1977. "The Distribution of Lifetime Earnings," Oxford Economic Papers, Oxford University Press, vol. 29(3), pages 412-429, November.
- MaCurdy, Thomas E., 1982. "The use of time series processes to model the error structure of earnings in a longitudinal data analysis," Journal of Econometrics, Elsevier, vol. 18(1), pages 83-114, January.
- Jacob Mincer, 1958. "Investment in Human Capital and Personal Income Distribution," Journal of Political Economy, University of Chicago Press, vol. 66, pages 281-281.
- Creedy, John, 1982. "The British State Pension: Contributions, Benefits and Indexation," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 44(2), pages 97-112, May.
- Shorrocks, Anthony, 1978. "Income inequality and income mobility," Journal of Economic Theory, Elsevier, vol. 19(2), pages 376-393, December.
- Sahota, Gian Singh, 1978. "Theories of Personal Income Distribution: A Survey," Journal of Economic Literature, American Economic Association, vol. 16(1), pages 1-55, March.
- Hause, John C, 1980. "The Fine Structure of Earnings and the On-the-Job Training Hypothesis," Econometrica, Econometric Society, vol. 48(4), pages 1013-1029, May.
- Anderson, T. W. & Hsiao, Cheng, 1982. "Formulation and estimation of dynamic models using panel data," Journal of Econometrics, Elsevier, vol. 18(1), pages 47-82, January. Full references (including those not matched with items on IDEAS)