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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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    1. Wagner, Joachim & Lorenz, Wilhelm, 1988. "The earnings function under test," Economics Letters, Elsevier, vol. 27(1), pages 95-99.
    2. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, February.
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    3. Ray Barrell & Dr Ian Hurst & Simon Kirby, 2009. "How to Pay for the Crisis or Macroeconomic implications of pension reform," National Institute of Economic and Social Research (NIESR) Discussion Papers 333, National Institute of Economic and Social Research.
    4. 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.
    5. Cagri S. Kumru & John Piggott, 2017. "Optimal Capital Income Taxation with Means-tested Benefits," Scottish Journal of Political Economy, Scottish Economic Society, vol. 64(3), pages 227-262, July.
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    7. Ray Barrell & Martin Weale, 2010. "Fiscal policy, fairness between generations, and national saving," Oxford Review of Economic Policy, Oxford University Press, vol. 26(1), pages 87-116, Spring.
    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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