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Comparing Annual and Lifetime Earnings: Distributions and Wage Premiums for a Cohort of Swedish Men

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  • Sofia Sandgren

    (Royal Institute of Technology)

Abstract

In this paper I use the Malmö Longitudinal Data set and calculate actual lifetime earnings for the 1928 cohort of Malmö men. I compare distributions of, and the educational wage premiums for, annual and lifetime earnings. The distribution of lifetime earnings is found to be less than the average annual distribution, but not for each separate annual estimate. When comparing annual and lifetime wage premiums, the significance for the lower levels of education tend to disappear. The annual wage premiums seem to be overestimated compared to the lifetime premiums, except for academic studies which are under-estimated annually.

Suggested Citation

  • Sofia Sandgren, 2007. "Comparing Annual and Lifetime Earnings: Distributions and Wage Premiums for a Cohort of Swedish Men," Journal of Income Distribution, Ad libros publications inc., vol. 16(1), pages 26-49, March.
    • Handle: RePEc:jid:journl:y:2007:v:16:i:1:p:26-49
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    More about this item

    Keywords

    earnings distributions; wage premiums; lifetime earnings;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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