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Earnings Distribution and Inequality over Time: Education versus Relative Position and Cohort

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  • Atoda, Naosumi
  • Tachibanaki, Toshiaki

Abstract

This paper constructs a theoretical model for analyzing the earnings distribution over time and provides an estimation procedure for the inequality of earnings over time. The theoretical model incorporates Gibrat's so-called "law of proportionate effect," Galton's "regression toward the mean," and serial correlation of the error terms, under the condition that the density function of earnings for each age-cohort in Japan is distributed as log-logistic. An emphasis is placed upon comparison of the influence of the relative position in the distribution with the influence of education on earnings. Finally, the coefficients of variation over time are presented. Copyright 1991 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

Suggested Citation

  • Atoda, Naosumi & Tachibanaki, Toshiaki, 1991. "Earnings Distribution and Inequality over Time: Education versus Relative Position and Cohort," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 32(2), pages 475-489, May.
    • Handle: RePEc:ier:iecrev:v:32:y:1991:i:2:p:475-89
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    Cited by:

    1. Sanae Tashiro, 2015. "Is being single better? An analysis of employment structure and wages of Japanese female workers," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 18(3), pages 239-254.
    2. Futoshi Yamauchi-K., 2000. "Labor Earnings Inequality and Learning About Individual Ability: Theory and Evidence from Japan and the United States," Econometric Society World Congress 2000 Contributed Papers 0782, Econometric Society.
    3. Yamauchi K., Futoshi, 2001. "Does inequality of labor earnings emerge in young days or later? : Labor earnings dynamics and learning about individual ability in heterogeneous society," Journal of Economic Behavior & Organization, Elsevier, vol. 44(4), pages 413-434, April.
    4. Franklin Soriano & Ruel Abello, 2015. "Modelling the relationships between the use of STEM* skills, collaboration, R&D and Innovation among Australian Businesses," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 18(3), pages 345-374.
    5. Joachim Jarreau, 2015. "The Impact of Naturalizations on Job Mobility and Wages: Evidence from France," AMSE Working Papers 1508, Aix-Marseille School of Economics, France.

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