IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v35y2003i9p1101-1115.html

Are you experienced? British evidence on age-earnings profiles

Author

Listed:
  • Helen Robinson

Abstract

Using UK data, evidence is provided that the widely used quadratic earnings function may fare badly as indicated by recent work in the USA. Using data from pooled time series of cross-sections from the General Household Survey the suitability of the quadratic specification alongside higher order polynomials is investigated on samples of men and, for the first time in work of this type, women working full-time. It is found that the quadratic specification understates earnings growth at low levels of experience, especially for those workers with few formal qualifications. The usage of higher order polynomials provides a better fit.

Suggested Citation

  • Helen Robinson, 2003. "Are you experienced? British evidence on age-earnings profiles," Applied Economics, Taylor & Francis Journals, vol. 35(9), pages 1101-1115.
    • Handle: RePEc:taf:applec:v:35:y:2003:i:9:p:1101-1115
    DOI: 10.1080/0003684032000082059
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/0003684032000082059
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/0003684032000082059?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Daniel H. Johnson & Gerald H. Makepeace, 1997. "Occupational Advantage in the Eighties: An Analysis of the Lifetime Earnings of Men," Work, Employment & Society, British Sociological Association, vol. 11(3), pages 401-411, September.
    2. 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.
    3. Wagner, Joachim & Lorenz, Wilhelm, 1988. "The earnings function under test," Economics Letters, Elsevier, vol. 27(1), pages 95-99.
    4. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, January-J.
    5. repec:fek:papers:doi:10.5085/jfe.10.1.29 is not listed on IDEAS
    6. Jacob A. Mincer, 1974. "Schooling and Earnings," NBER Chapters, in: Schooling, Experience, and Earnings, pages 41-63, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cagri Seda Kumru & John Piggott, 2010. "Should Public Retirement Pensions Be Means-tested?," DEGIT Conference Papers c015_049, DEGIT, Dynamics, Economic Growth, and International Trade.
    2. Inkmann, Joachim, 2006. "Compensating wage differentials for defined benefit and defined contribution occupational pension scheme benefits," LSE Research Online Documents on Economics 24516, London School of Economics and Political Science, LSE Library.
    3. Ray Barrell & Dr Ian Hurst & Simon Kirby, 2009. "How to Pay for the Crisis or Macroeconomic implications of pension reform," National Institute of Economic and Social Research (NIESR) Discussion Papers 333, National Institute of Economic and Social Research.
    4. Kadija Charni & Stephen Bazen, 2017. "Do earnings really decline for older workers?," International Journal of Manpower, Emerald Group Publishing Limited, vol. 38(1), pages 4-24, April.
    5. Cagri S. Kumru & John Piggott, 2017. "Optimal Capital Income Taxation with Means-tested Benefits," Scottish Journal of Political Economy, Scottish Economic Society, vol. 64(3), pages 227-262, July.
    6. Michal Myck & Gillian Paull, 2001. "The role of employment experience in explaining the gender wage gap," IFS Working Papers W01/18, Institute for Fiscal Studies.
    7. Ray Barrell & Martin Weale, 2010. "Fiscal policy, fairness between generations, and national saving," Oxford Review of Economic Policy, Oxford University Press, vol. 26(1), pages 87-116, Spring.
    8. Kosei Fukuda, 2008. "A Cohort Analysis Of Us Age–Earnings Profiles," Bulletin of Economic Research, Wiley Blackwell, vol. 60(2), pages 191-207, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hilmar Luckert & Christof Kühnlein & Leonhard Knoll, 1995. "Kohorteneffekte auf Niveau und Entwicklung von Arbeitseinkommen im Laufe des Berufslebens: eine empirische Studie," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 64(4), pages 602-623.
    2. Sebastian Stolorz, 2005. "A Test of the Signalling Hypothesis - Evidence from Natural Experiment," Labor and Demography 0512008, University Library of Munich, Germany.
    3. Sami Napari, 2008. "The Early‐career Gender Wage Gap among University Graduates in the Finnish Private Sector," LABOUR, CEIS, vol. 22(4), pages 697-733, December.
    4. Robert Plasman & François Rycx & Ilan Tojerow, 2007. "Wage differentials in Belgium: the role of worker and employer characteristics," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 50(1), pages 11-40.
    5. Arthur Charpentier & Emmanuel Flachaire & Antoine Ly, 2017. "Econom\'etrie et Machine Learning," Papers 1708.06992, arXiv.org, revised Mar 2018.
    6. Kadija Charni & Stephen Bazen, 2017. "Do earnings really decline for older workers?," International Journal of Manpower, Emerald Group Publishing Limited, vol. 38(1), pages 4-24, April.
    7. Kadija Charni, 2016. "Is it Better to Work When We Are Older? An Empirical Comparison Between France and Great Britain," AMSE Working Papers 1640, Aix-Marseille School of Economics, France.
    8. Solomon W. Polachek & Jun (Jeff) Xiang, 2006. "The Effects of Incomplete Employee Wage Information: A Cross-Country Analysis," Research in Labor Economics, in: The Economics of Immigration and Social Diversity, pages 35-75, Emerald Group Publishing Limited.
    9. Jie Gong & Ang Sun & Zhichao Wei, 2018. "Choosing the Pond: On-the-Job Experience and Long-Run Career Outcomes," Management Science, INFORMS, vol. 64(2), pages 860-872, February.
    10. Elżbieta Stępień, 2009. "The Impact of International Trade and Foreign Competition on Labour Earnings in Poland," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 24.
    11. James J. Heckman & Lance J. Lochner & Petra E. Todd, 2008. "Earnings Functions and Rates of Return," Journal of Human Capital, University of Chicago Press, vol. 2(1), pages 1-31.
    12. Luis P. Correia, 2006. "Schooling, learning on-the-job, earnings and inequality," Bristol Economics Discussion Papers 06/585, School of Economics, University of Bristol, UK.
    13. Chen, Yu-Fu & Zoega, Gylfi, 2010. "An essay on the generational effect of employment protection," Mathematical Social Sciences, Elsevier, vol. 59(3), pages 349-359, May.
    14. John Mullahy & Jody L. Sindelar, 1991. "Alcoholism, Work, and Income Over the Life Cycle," NBER Working Papers 3909, National Bureau of Economic Research, Inc.
    15. Stephanie Aaronson, 2002. "The rise in lifetime earnings inequality among men," Finance and Economics Discussion Series 2002-21, Board of Governors of the Federal Reserve System (U.S.).
    16. Vladimir Gimpelson, 2019. "Age and Wage: Stylized Facts and Russian Evidence," HSE Economic Journal, National Research University Higher School of Economics, vol. 23(2), pages 185-237.
    17. repec:lan:wpaper:4408 is not listed on IDEAS
    18. Shawn Ulrick, 2005. "A nonparametric analysis of the black/white wage gap," Applied Economics Letters, Taylor & Francis Journals, vol. 12(13), pages 811-815.
    19. Christophe Nordman & François-Charles Wolff, 2007. "On-the-job learning and earnings in Benin, Morocco and Senegal," Working Papers DT/2007/09, DIAL (Développement, Institutions et Mondialisation).
    20. Lemieux, Thomas & Milligan, Kevin, 2008. "Incentive effects of social assistance: A regression discontinuity approach," Journal of Econometrics, Elsevier, vol. 142(2), pages 807-828, February.
    21. Angel de la Fuente & Antonio Ciccone, 2003. "Human capital in a global and knowledge-based economy," UFAE and IAE Working Papers 562.03, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:35:y:2003:i:9:p:1101-1115. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.