Cohort, Year and Age Effects in Canadian Wage Data
We use Canadian SCFs 1971-1993 to study the wages of full-time, full-year male and female workers. Median real wages of 24-year-old males without a university degree fell by 25% between 1978 and 1993. For 24-year-old females the decline was more modest and reversed in 1987, but real wages in 1993 were still significantly lower than they were in 1978. We investigate whether these changes are permanent “cohort” effects or more temporary “year” effects. Graphs of median wages against year and age indicate some periods where year effects are more prominent than cohort effects and other periods where the reverse is true. We then compare the results from two models, one assigning the trends to year effects, the other assigning them to cohort effects, and use these models to produce real wage projections.
|Date of creation:|
|Date of revision:|
|Contact details of provider:|| Postal: 1280 Main Street West, Hamilton, Ontario, L8S 4M4|
Phone: (905) 525-9140 ext. 22765
Fax: (905) 521-8232
Web page: http://www.mcmaster.ca/economics/
More information through EDIRC
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.:
- Paul Beaudry & David Green, 1997.
"Cohort Patterns in Canadian Earnings: Assessing the Role of Skill Premia in Inequality Trends,"
NBER Working Papers
6132, National Bureau of Economic Research, Inc.
- Paul Beaudry & David A. Green, 2000. "Cohort patterns in Canadian earnings: assessing the role of skill premia in inequality trends," Canadian Journal of Economics, Canadian Economics Association, vol. 33(4), pages 907-936, November.
- A. L. Robb & L. Magee & J. B. Burbidge, 1992. "Kernel Smoothed Consumption-Age Quantiles," Canadian Journal of Economics, Canadian Economics Association, vol. 25(3), pages 669-80, August.
- Angus S. Deaton & Christina Paxson, 1994.
"Saving, Growth, and Aging in Taiwan,"
in: Studies in the Economics of Aging, pages 331-362
National Bureau of Economic Research, Inc.
- Amanda Gosling & Stephen Machin & Costas Meghir, 2000.
"The Changing Distribution of Male Wages in the U.K,"
Review of Economic Studies,
Oxford University Press, vol. 67(4), pages 635-666.
- Amanda Gosling & Stephen Machin & Costas Meghir, 1994. "The changing distribution of male wages in the UK," IFS Working Papers W94/13, Institute for Fiscal Studies.
- A Gosling & Stephen Machin, 1995. "The Changing Distribution of Male Wages in the UK," CEP Discussion Papers dp0271, Centre for Economic Performance, LSE.
- Auerbach, Alan J & Kotlikoff, Laurence J & Skinner, Jonathan, 1983.
"The Efficiency Gains from Dynamic Tax Reform,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 24(1), pages 81-100, February.
- Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-42, June.
- Burbidge, John B & Magee, Lonnie & Robb, A Leslie, 1997. "Canadian Wage Inequality over the Last Two Decades," Empirical Economics, Springer, vol. 22(2), pages 181-203.
When requesting a correction, please mention this item's handle: RePEc:mcm:cilnwp:13. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.