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Demography, Human Capital Investment, and Lifetime Earnings for Women and Men

Author

Listed:
  • Jacobsen, Joyce P.

    (Wesleyan University)

  • Khamis, Melanie

    (Wesleyan University)

  • Yuksel, Mutlu

    (Dalhousie University)

Abstract

Can the demographic trends of increased life expectancy and decreasing birth rates, along with the labor market patterns of returns to human capital investment and changes in real hourly earnings, account for changes in women's and men's lifetime earnings? Using a Vector Error Correction Model to analyze annual US CPS data from 1964 to 2019, we find patterns linking these factors and demonstrating that they have significant roles to women's lifetime earnings but not to men's. These findings are consistent with the convergence of gender earning gap has occurred mainly due to women's responses to changing demographic and socioeconomic factors.

Suggested Citation

  • Jacobsen, Joyce P. & Khamis, Melanie & Yuksel, Mutlu, 2024. "Demography, Human Capital Investment, and Lifetime Earnings for Women and Men," IZA Discussion Papers 16936, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16936
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    More about this item

    Keywords

    life expectancy; lifetime earnings; human capital investment; VECM;
    All these keywords.

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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