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Life-Cycle Earnings and Productivity Risk: A Cross-Country Comparison

Title: Life-Cycle Earnings and Productivity Risk: A Cross-Country Comparison
Authors: Christian Bayer; Falko Juessen; Università Commerciale; L. Bocconi; Jel-codes E
Contributors: The Pennsylvania State University CiteSeerX Archives
Publication Year: 2008
Collection: CiteSeerX
Subject Terms: Life-cycle risk; heterogeneity; productivity
Description: This paper provides a cross-country comparison of life-cycle income and productivity risk. We draw our inference from household panel data sets for the US, the UK, and Germany. We measure productivity dispersion by wage dispersion. First, household characteristics explain about 60 percent of the dispersion in income within an age-year group in all three countries. They explain less than 30 percent of the corresponding variance in wages. Second, the variance of idiosyncratic household productivity is almost linearly increasing in age in all three economies, but with increments being smaller in the European data. We also document that sample selection due to non-employment displays a distinct age profile and differs somewhat across countries. We thus explicitly take into account this sample selection when estimating the age profiles of variances.
Document Type: text
Language: English
Relation: http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.337.5335
Availability: http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.337.5335
Rights: Metadata may be used without restrictions as long as the oai identifier remains attached to it.
Accession Number: edsbas.63F92C07
Database: BASE