Using data on French male wage workers observed over 30 years, we estimate by random and fixed effect methods a wage equation with pervasive heterogeneity. Individual wage profiles are derived from a human capital investment model and described by a level, a slope and a curvature. Among others, our empirical application delivers original results on issues like the Mincer dip, and the time-varying correlations between wage growth and levels, or between initial wages and growth. Static and long-run inequality indices can easily be compared and decomposed into their multidimensional components.
Human capital investment; inequality; wage dynamics; post-schooling; wage growth; random and fixed effects;
- C33: Panel Data Models • Spatio-temporal Models
- D91: Intertemporal Household Choice • Life Cycle Models and Saving
- I24: Education and Inequality
- J24: Human Capital • Skills • Occupational Choice • Labor Productivity
- J31: Wage Level and Structure • Wage Differentials
Thierry Magnac et Sébastien Roux, « Heterogeneity and Wage Inequalities over the Life Cycle », TSE Working Paper, n° 19-1041, octobre 2019, révision mars 2021.
Thierry Magnac et Sébastien Roux, « Heterogeneity and Wage Inequalities over the Life Cycle », European Economic Review, vol. 134, n° 103715, mai 2021.
European Economic Review, vol. 134, n° 103715, mai 2021