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Can Cohort Effects Explain the Decline of Earnings for Older Workers? Evidence from France and Great Britain

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  • Kadija Charni

Abstract

Classical literature takes cross‐sectional age‐earnings profile to describe how earnings evolve over the lifecycle. Using a cohort analysis, I argue that this interpretation of age‐earnings profile is not correct. I show that cohort effects largely explain the decline observed at older ages using a rotating panel data for France and a longitudinal panel data for Great Britain for the period 1991–2007. I find no clear evidence that earnings decline at older age, although the profiles are different between countries. Earnings rise linearly with age in France, whereas it becomes flat for older workers in Great Britain.

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  • Kadija Charni, 2019. "Can Cohort Effects Explain the Decline of Earnings for Older Workers? Evidence from France and Great Britain," LABOUR, CEIS, vol. 33(3), pages 306-350, September.
    • Handle: RePEc:bla:labour:v:33:y:2019:i:3:p:306-350
    DOI: 10.1111/labr.12149
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