Sources of inequality in annual earnings: Lifetime inequality, life-cycle variation, transitory volatility
Seminar
Speaker
Prof. Moshe Justman
Date
31/10/2022 - 12:30 - 11:00Add To Calendar
2022-10-31 11:00:00
2022-10-31 12:30:00
Sources of inequality in annual earnings: Lifetime inequality, life-cycle variation, transitory volatility
.We estimate expected earnings trajectories and average lifetime earnings for males born
between 1927-1987 from PSID data and use this to systematically represent inequality in
annual earnings as the sum of inequality in lifetime earnings, dispersion from life-cycle
variation in earnings, and unanticipated transitory volatility. Analyzing the increase in annual
earnings inequality in the US between 1986 and 2018, we attribute 69% of the rise to increased
volatility, 14% to increased lifetime inequality, and most of the rest to a large rise in the
regressive incidence of earnings shocks partly offset by the rising share of younger high
earners.
Economics Building (Number 504). Room 011
אוניברסיטת בר-אילן - Department of Economics
Economics.Dept@mail.biu.ac.il
Asia/Jerusalem
public
Place
Economics Building (Number 504). Room 011
Abstract
.We estimate expected earnings trajectories and average lifetime earnings for males born
between 1927-1987 from PSID data and use this to systematically represent inequality in
annual earnings as the sum of inequality in lifetime earnings, dispersion from life-cycle
variation in earnings, and unanticipated transitory volatility. Analyzing the increase in annual
earnings inequality in the US between 1986 and 2018, we attribute 69% of the rise to increased
volatility, 14% to increased lifetime inequality, and most of the rest to a large rise in the
regressive incidence of earnings shocks partly offset by the rising share of younger high
earners.
Attached file
Last Updated Date : 17/11/2022
