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Top Earners: Comparing the US, Canada, Denmark and Sweden

Author

Listed:
  • Moira Daly

    (Copenhagen Business School)

  • Martin Nybom

    (Stockholm University)

  • Mark Huggett

    (Georgetown University)

  • Alejandro Badel

    (St. Louis Fed)

Abstract

We document a common set of life-cycle earnings facts using data from the US, Canada, Denmark and Sweden. In each country, we find that (1) the earnings distribution above the median fans out with age, (2) the right tail of the earnings distribution becomes thicker with age, (3) the wage-rate distribution above the median fans out with age and (4) the real earnings growth rate over the working lifetime is larger for higher lifetime earners. Compared to the US, we find that Denmark and Sweden have a more compressed earnings and wage rate distribution above the median and a smaller real earnings growth rates for top lifetime earners.

Suggested Citation

  • Moira Daly & Martin Nybom & Mark Huggett & Alejandro Badel, 2016. "Top Earners: Comparing the US, Canada, Denmark and Sweden," 2016 Meeting Papers 1057, Society for Economic Dynamics.
  • Handle: RePEc:red:sed016:1057
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