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Cohort, Year and Age Effects in Canadian Wage Data

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  • J.B. Burbidge
  • L. Magee
  • A.L. Robb

Abstract

We use Canadian SCFs 1971-1993 to study the wages of full-time, full-year male and female workers. Median real wages of 24-year-old males without a university degree fell by 25% between 1978 and 1993. For 24-year-old females the decline was more modest and reversed in 1987, but real wages in 1993 were still significantly lower than they were in 1978. We investigate whether these changes are permanent “cohort” effects or more temporary “year” effects. Graphs of median wages against year and age indicate some periods where year effects are more prominent than cohort effects and other periods where the reverse is true. We then compare the results from two models, one assigning the trends to year effects, the other assigning them to cohort effects, and use these models to produce real wage projections.

Suggested Citation

  • J.B. Burbidge & L. Magee & A.L. Robb, "undated". "Cohort, Year and Age Effects in Canadian Wage Data," Canadian International Labour Network Working Papers 13, McMaster University.
    • Handle: RePEc:mcm:cilnwp:13
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    References listed on IDEAS

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    8. Burbidge, John B & Magee, Lonnie & Robb, A Leslie, 1997. "Canadian Wage Inequality over the Last Two Decades," Empirical Economics, Springer, vol. 22(2), pages 181-203.
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    Cited by:

    1. Elena Giarda, 2008. "The worsening of wage expectations in Italy: a study based on administrative data," International Journal of Manpower, Emerald Group Publishing Limited, vol. 29(1), pages 64-87, March.
    2. Lonnie Magee & John Burbidge & Les Robb, 2000. "The Correlation Between Husband's and Wife's Education: Canada, 1971-1996," Social and Economic Dimensions of an Aging Population Research Papers 24, McMaster University.
    3. Sung-Hee Jeon, 2004. "The impacts of the 1988 tax reform on married women's labour supply in Canada," Department of Economics Working Papers 2004-19, McMaster University.
    4. Peter Kuhn (McMaster), "undated". "Labour Market Polarization: Canada in International Perspective," Canadian International Labour Network Working Papers 02, McMaster University.
    5. Paul Beaudry & David A. Green, 2000. "Cohort patterns in Canadian earnings: assessing the role of skill premia in inequality trends," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 33(4), pages 907-936, November.
    6. Marenglen Marku & Djavad Salehi-Isfahani, 2006. "Reversal of fortunes: a cohort analysis of lifetime earnings in Iran," Working Papers e06-1, Virginia Polytechnic Institute and State University, Department of Economics.
    7. Thomas F. Crossley & Yuri Ostrovsky, 2003. "A Synthetic Cohort Analysis of Canadian Housing Careers," Social and Economic Dimensions of an Aging Population Research Papers 107, McMaster University.

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    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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