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Top Earners: a Labor Productivity Process

Author

Listed:
  • Campanale Claudio

    (Department of Economics, Social Studies, Applied Mathematics and Statistics (ESOMAS) University of Torino, Italy)

  • Rocio Fernandez-Bastidas

    (Departamento de Fundamentos del Analisis Economico (FAE), Universidad de Alicante, Spain)

Abstract

In the present paper we confront standard wage processes used in the quantitative literature on the optimal tax progressivity and a process with heterogeneous life-cycle profiles that we propose against the data. We find that the former fail to capture several features of the earnings dynamics at the very top of the distribution while our proposed model improves along some of these dimensions.

Suggested Citation

  • Campanale Claudio & Rocio Fernandez-Bastidas, 2022. "Top Earners: a Labor Productivity Process," Working papers 074, Department of Economics, Social Studies, Applied Mathematics and Statistics (Dipartimento di Scienze Economico-Sociali e Matematico-Statistiche), University of Torino.
    • Handle: RePEc:tur:wpapnw:074
    as

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    File URL: https://www.bemservizi.unito.it/repec/tur/wpapnw/m74.pdf
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    References listed on IDEAS

    as
    1. Fatih Guvenen & Greg Kaplan & Jae Song, 2021. "The Glass Ceiling and the Paper Floor: Changing Gender Composition of Top Earners since the 1980s," NBER Macroeconomics Annual, University of Chicago Press, vol. 35(1), pages 309-373.
    2. Greg Kaplan, 2012. "Inequality and the life cycle," Quantitative Economics, Econometric Society, vol. 3(3), pages 471-525, November.
    3. Guner, Nezih & Lopez-Daneri, Martin & Ventura, Gustavo, 2016. "Heterogeneity and Government revenues: Higher taxes at the top?," Journal of Monetary Economics, Elsevier, vol. 80(C), pages 69-85.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Top earners; Earnings Dynamics; Heterogeneous Income Growth;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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