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Are you experienced? British evidence on age-earnings profiles

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  • Helen Robinson

Abstract

Using UK data, evidence is provided that the widely used quadratic earnings function may fare badly as indicated by recent work in the USA. Using data from pooled time series of cross-sections from the General Household Survey the suitability of the quadratic specification alongside higher order polynomials is investigated on samples of men and, for the first time in work of this type, women working full-time. It is found that the quadratic specification understates earnings growth at low levels of experience, especially for those workers with few formal qualifications. The usage of higher order polynomials provides a better fit.

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  • Helen Robinson, 2003. "Are you experienced? British evidence on age-earnings profiles," Applied Economics, Taylor & Francis Journals, vol. 35(9), pages 1101-1115.
    • Handle: RePEc:taf:applec:v:35:y:2003:i:9:p:1101-1115
    DOI: 10.1080/0003684032000082059
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    References listed on IDEAS

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    3. Kadija Charni & Stephen Bazen, 2017. "Do earnings really decline for older workers?," International Journal of Manpower, Emerald Group Publishing Limited, vol. 38(1), pages 4-24, April.
    4. Michal Myck & Gillian Paull, 2001. "The role of employment experience in explaining the gender wage gap," IFS Working Papers W01/18, Institute for Fiscal Studies.
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    8. Kosei Fukuda, 2008. "A Cohort Analysis Of Us Age–Earnings Profiles," Bulletin of Economic Research, Wiley Blackwell, vol. 60(2), pages 191-207, April.

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