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Born to Run Behind? Persistent Relative Age Effects on Earnings

Author

Listed:
  • Roed Larsen, Erling
  • Solli, Ingeborg

    (UiS)

Abstract

The relative age effect is an established phenomenon in the literature, but estimates of its strength and duration vary. In order to study the economic magnitude of the effect, we use Norwegian registry data to investigate how birth month affects earnings throughout the full course of life for all Norwegian males born during the period 1940-1949. We examine earnings from 20 to 68 years of age. Our findings suggest that the youngest within a cohort have a relative age disadvantage in early career years that translates into a relative age advantage during late career years. When observing non-discounted life earnings, we find that the two effects cancel out and leave no relative age imprint on life earnings.

Suggested Citation

  • Roed Larsen, Erling & Solli, Ingeborg, 2012. "Born to Run Behind? Persistent Relative Age Effects on Earnings," UiS Working Papers in Economics and Finance 2012/10, University of Stavanger.
    • Handle: RePEc:hhs:stavef:2012_010
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    References listed on IDEAS

    as
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    8. repec:zbw:rwidps:0027 is not listed on IDEAS
    9. Claire Crawford & Lorraine Dearden & Ellen Greaves, 2014. "The drivers of month-of-birth differences in children's cognitive and non-cognitive skills," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 177(4), pages 829-860, October.
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    Cited by:

    1. Luca Fumarco & Giambattista Rossi, 2015. "Relative Age Effect on Labor Market Outcomes for High Skilled Workers – Evidence from Soccer," Management Working Papers 9, Birkbeck Department of Management, revised Mar 2015.
    2. Elliott Fan & Jin-Tan Liu & Yen-Chien Chen, 2017. "Is the Quarter of Birth Endogenous? New Evidence from Taiwan, the US, and Indonesia," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 79(6), pages 1087-1124, December.

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    More about this item

    Keywords

    Birth date effects; life earnings;

    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

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