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Born to run behind? Persisting birth month effects on earnings

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  • Røed Larsen, Erling
  • Solli, Ingeborg F.

Abstract

The relative age effect is an established phenomenon in the literature, but estimates of its strength and duration vary. With Norwegian registry data we investigate how birth month affects earnings throughout the full course of life (20 to 68years) for all Norwegian men born during the 1940s. We compare earnings across birth month within school cohorts, and observe earnings both at given points in time (“Social age”) and at given exact ages (“Biological age”). Our findings suggest that, albeit significant earnings differences at given ages, the effects cancel out over the full course of life and leave no imprint on life earnings.

Suggested Citation

  • Røed Larsen, Erling & Solli, Ingeborg F., 2017. "Born to run behind? Persisting birth month effects on earnings," Labour Economics, Elsevier, vol. 46(C), pages 200-210.
    • Handle: RePEc:eee:labeco:v:46:y:2017:i:c:p:200-210
    DOI: 10.1016/j.labeco.2016.10.005
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    References listed on IDEAS

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    2. Cristina Borra & Libertad González Luna & David Patiño, 2021. "Maternal age and infant health," Economics Working Papers 1791, Department of Economics and Business, Universitat Pompeu Fabra.
    3. Görlitz, Katja & Penny, Merlin & Tamm, Marcus, 2022. "The long-term effect of age at school entry on cognitive competencies in adulthood," Journal of Economic Behavior & Organization, Elsevier, vol. 194(C), pages 91-104.
    4. Bratberg, Espen & Holmås, Tor Helge & Monstad, Karin, 2017. "The causal effect of workload on the labour supply of older employees," Working Papers in Economics 16/17, University of Bergen, Department of Economics.
    5. Hieu T. M. Nguyen & Blane D. Lewis, 2020. "Teenage Marriage and Motherhood in Vietnam: The Negative Effects of Starting School Early," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 39(4), pages 739-762, August.
    6. YAMAGUCHI Shintaro & ITO Hirotake & NAKAMURO Makiko, 2020. "Month-of-Birth Effects on Skills and Skill Formation," Discussion papers 20079, Research Institute of Economy, Trade and Industry (RIETI).
    7. Chiara Ardito & Roberto Leombruni & David Blane & Angelo d’Errico, 2020. "To Work or Not to Work? The Effect of Higher Pension Age on Cardiovascular Health," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 59(3), pages 399-434, July.
    8. Holmes, Chanita C. & Tracey, Marlon R. & Belasen, Ariel R., 2020. "The value of early physical maturity to young adult labor market outcomes," Economics & Human Biology, Elsevier, vol. 37(C).
    9. Shintaro Yamaguchi & Hirotake Ito & Makiko Nakamuro, 2020. "Month-of-Birth Effects on Skills and Skill Formation," CIRJE F-Series CIRJE-F-1153, CIRJE, Faculty of Economics, University of Tokyo.
    10. Cristina Borra & Libertad González & David Patiño, 2024. "Mothers' school starting age and infant health," Health Economics, John Wiley & Sons, Ltd., vol. 33(6), pages 1153-1191, June.
    11. Oosterbeek, Hessel & ter Meulen, Simon & van der Klaauw, Bas, 2021. "Long-term effects of school-starting-age rules," Economics of Education Review, Elsevier, vol. 84(C).
    12. Shintaro Yamaguchi & Hirotake Ito & Makiko Nakamuro, 2020. "Month-of-Birth Effects on Skills and Skill Formation," RF Berlin - CReAM Discussion Paper Series 2015, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
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    14. Yamaguchi, Shintaro & Ito, Hirotake & Nakamuro, Makiko, 2023. "Month-of-Birth Effects on Skills and Skill Formation," IZA Discussion Papers 15895, Institute of Labor Economics (IZA).
    15. Guo, Chuanyi & Wang, Xuening & Meng, Chen, 2023. "Does the early bird catch the worm? Evidence and interpretation on the long-term impact of school entry age in China," China Economic Review, Elsevier, vol. 77(C).

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    More about this item

    Keywords

    Birth month effect; Life earnings; Relative age;
    All these keywords.

    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
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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