Life Cycle Earnings and Wage Premiums
(English)Manuscript (preprint) (Other academic)
In this paper I use the Malmö Longitudinal Study and construct actual age-earnings profiles for the 1928 cohort of Malmö men. Real earnings for the highest educated men are found to have decreased significantly during the late 70s and early 80s. The emerging age-earnings profiles are rather similar to the approximated profiles by Mincer (1974). The same development is found for the wage premiums over the life-cycle. A similar pattern has been found in other Swedish studies, but then from cross-sectional data. A significant difference is found between the wage premiums for vocational and lower secondary school, even though they involve the same number of years in education. Finally, ability is introduced in the model, and a proportionally much larger ability bias is found for the lower levels of education. This is explained with the larger spread of ability in the lower educational groups.
Returns to education, ability bias
Economics and Business
IdentifiersURN: urn:nbn:se:kth:diva-24954OAI: oai:DiVA.org:kth-24954DiVA: diva2:354591
QC 201010042010-10-042010-10-042010-10-04Bibliographically approved