A longitudinal analysis of within-education-group earnings inequality

Arbeitspapier

Using a large Swedish longitudinal database for the period 1982-2005, I estimate and compare within-group inequality in persistent and transitory earnings among men with high-school and college degrees. Analyses of inequality over the life cycle reveal that experience-variance profiles of persistent earnings are very similar across the two education groups and also consistent with standard human capital models of on-the-job training. Transitory earnings shocks display a marked U-shaped variance pattern over the life-cycle for both groups, but are clearly larger for high-school graduates and also account for a larger proportion of their overall variance. Analyses of changes in within-group inequality over time, holding life-cycle effects constant, show that high-school and college graduates have been subject to similar trend growths in both persistent and transitory earnings differentials between 1982 and 2005.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 2008:14

Classification and Topics

• Classification: Wirtschaft ; Multiple or Simultaneous Equation Models: Panel Data Models; Spatio-temporal Models ; Personal Income, Wealth, and Their Distributions ; Wages, Compensation, and Labor Costs: Other
• Subject: Permanent inequality ; Earnings instability ; Life-cycle earnings ; Schooling ; Einkommensverteilung ; Akademiker ; Lebenszyklus ; Schweden

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Gustavsson, Magnus
• Event: Veröffentlichung
• (who): Uppsala University, Department of Economics
• (where): Uppsala
• (when): 2008

Further information

• Handle: http://hdl.handle.net/10419/82552
• URN: urn:nbn:se:uu:diva-86784
• Last update: 10.03.2025, 11:44 AM CET