Heterogeneity and wage inequalities over the life cycle

Thierry Magnac and Sébastien Roux ()

Abstract: Using data on French male wage workers observed over 30 years, we estimate by random and fixed effect methods a wage equation with pervasive heterogeneity. Individual wage profiles are derived from a human capital investment model and described by a level, a slope and a curvature. Among others, our empirical application delivers original results on issues like the Mincer dip, and the time-varying correlations between wage growth and levels, or between initial wages and growth. Static and long-run inequality indices can easily be compared and decomposed into their multidimensional components.

Keywords: Human capital investment; Inequality; Wage dynamics; Post-schooling; Wage growth; Random and fixed effects (search for similar items in EconPapers)
Date: 2021-05
Note: View the original document on HAL open archive server: https://hal.science/hal-04532017v1
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Published in European Economic Review, 2021, 134, pp.103715. ⟨10.1016/j.euroecorev.2021.103715⟩

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Related works:
Journal Article: Heterogeneity and wage inequalities over the life cycle (2021)
Working Paper: Heterogeneity and Wage Inequalities over the Life Cycle (2021)
Working Paper: Heterogeneity and Wage Inequalities over the Life Cycle (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04532017

DOI: 10.1016/j.euroecorev.2021.103715

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