Accounting for changing returns to experience

Returns to experience for U.S. workers have changed over the post-war period. This paper argues that a simple model goes a long way towards replicating these changes. The model features three well-known ingredients: (i) 
Returns to experience for U.S. workers have changed over the post-war period. This paper argues that a simple model goes a long way towards replicating these changes. The model features three well-known ingredients: (i) an aggregate production function with constant skill-biased technical change; (ii) cohort qualities that vary with average years of schooling; and crucially (iii) time-invariant age-efficiency profiles. The model quantitatively accounts for changes in longitudinal and cross-sectional returns to experience, as well as the differential evolution of the college wage premium for young and old workers.
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Metadaten
Author:Lutz Hendricks
URN:urn:nbn:de:hebis:30:3-420766
URL:https://ssrn.com/abstract=2869179
Parent Title (English):Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 558
Series (Serial Number):CFS working paper series (558)
Publisher:Center for Financial Studies
Place of publication:Frankfurt, M.
Document Type:Working Paper
Language:English
Date of Publication (online):2016/11/15
Year of first Publication:2016
Publishing Institution:Universitätsbibliothek Johann Christian Senckenberg
Release Date:2016/11/15
Tag:College wage premium; Returns to experience
Issue:December 14, 2015
Pagenumber:30
HeBIS PPN:396765491
Institutes:Wirtschaftswissenschaften
Center for Financial Studies (CFS)
Dewey Decimal Classification:330 Wirtschaft
JEL-Classification:E24 Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital (Updated!)
I28 Government Policy
J31 Wage Level and Structure; Wage Differentials
Sammlungen:Universitätspublikationen
Licence (German):License Logo Veröffentlichungsvertrag für Publikationen

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