The Effects of Cohort Size on European Earnings
I use the cross-country and time variation in the demographic structure of 11 European countries to study how changes in cohort size affect real earnings in Europe. This is an important question in the light of widespread population ageing. I find that cohort size has a negative and statistically significant effect on earnings, and that this effect is larger for the older age group - aged between 35 and 54 - than for the younger group - aged 20 to 34. I also find that earnings are more sensible to changes in cohort size in Southern Europe, which points to a lower degree of substitutability between individuals with the same education but different age. I argue that the uncovered lower substitutability in the Olive Belt of Europe is in line with the higher employment protection that its workers enjoy, at least compared to the workers located in Northern Europe. One important policy implication of this study is that the demographic shift away from the young and toward the old, a baby bust after a baby boom, is likely to tilt age - earnings profiles in favor of the young more in Southern than in Northern Europe.
|Date of creation:||Jan 2007|
|Date of revision:|
|Contact details of provider:|| Postal: via del Santo, 33 - 35122 Padova|
Phone: +39 +49 8274210
Fax: +39 +49 827.4211
Web page: http://www.decon.unipd.it/
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.:
- Stapleton, David C & Young, Douglas J, 1988. "Educational Attainment and Cohort Size," Journal of Labor Economics, University of Chicago Press, vol. 6(3), pages 330-61, July.
- Nickell, Stephen & Layard, Richard, 1999.
"Labor market institutions and economic performance,"
Handbook of Labor Economics,
in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 46, pages 3029-3084
- Nickell, S. & Layard, R., 1997. "Labour Market Institutions and Economic Performance," Papers 23, Centre for Economic Performance & Institute of Economics.
- Richard Layard & Stephen Nickell, 1998. "Labour Market Institutions and Economic Performance," CEP Discussion Papers dp0407, Centre for Economic Performance, LSE.
- Juan F. Jimeno & Diego Rodríguez-Palenzuela, 2003.
"Youth Unemployment in the OECD: Demographic Shifts, Labour Market Institutions and Macroeconomic Shocks,"
Economics Working Papers
019, European Network of Economic Policy Research Institutes.
- Jimeno, Juan F. & Rodriguez-Palenzuela, Diego, 2002. "Youth unemployment in the OECD: demographic shifts, labour market institutions, and macroeconomic shocks," Working Paper Series 0155, European Central Bank.
- Juan F. Jimeno & Diego Rodríguez-Palenzuela, . "Youth unemployment in the OECD: Demographic shifts, labour market institutions, and macroeconomic shocks," Working Papers 2002-15, FEDEA.
- Giuseppe Bertola & Francine D. Blau & Lawrence M. Kahn, 2002.
"Labor Market Institutions and Demographic Employment Patterns,"
NBER Working Papers
9043, National Bureau of Economic Research, Inc.
- Giuseppe Bertola & Francine Blau & Lawrence Kahn, 2007. "Labor market institutions and demographic employment patterns," Journal of Population Economics, Springer;European Society for Population Economics, vol. 20(4), pages 833-867, October.
- Bertola, Giuseppe & Blau, Francine D & Kahn, Lawrence, 2002. "Labour Market Institutions and Demographic Employment Patterns," CEPR Discussion Papers 3448, C.E.P.R. Discussion Papers.
- Axel Boersch-Supan, 2001. "Labor Market Effects of Population Aging," NBER Working Papers 8640, National Bureau of Economic Research, Inc.
- Blanchard, Olivier J & Giavazzi, Francesco, 2001.
"Macroeconomic Effects of Regulation and Deregulation in Goods and Labour Markets,"
CEPR Discussion Papers
2713, C.E.P.R. Discussion Papers.
- Olivier Blanchard & Francesco Giavazzi, 2003. "Macroeconomic Effects of Regulation and Deregulation in Goods and Labor Markets," The Quarterly Journal of Economics, Oxford University Press, vol. 118(3), pages 879-907.
- Olivier Blanchard & Francesco Giavazzi, 2001. "Macroeconomic Effects of Regulation and Deregulation in Goods and Labor Markets," NBER Working Papers 8120, National Bureau of Economic Research, Inc.
- Olivier Blanchard & Francesco Giavazzi, . "Macroeconomic effects of regulation and deregulation in goods and labor markets," Working Papers 187, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Franco Peracchi, 2002. "The European Community Household Panel: A review," Empirical Economics, Springer, vol. 27(1), pages 63-90.
- Wright, Robert E, 1991. "Cohort Size and Earnings in Great Britain," Journal of Population Economics, Springer;European Society for Population Economics, vol. 4(4), pages 295-305, November.
When requesting a correction, please mention this item's handle: RePEc:pad:wpaper:0036. 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: (Raffaele Dei Campielisi)
If references are entirely missing, you can add them using this form.