Work

Interpreting Cohort Profiles of Life Cycle Earnings Volatility

Year: 2024

Type: article

Abstract: We present new estimates of earnings volatility over time and the life cycle for men and women by race and human capital, using Social Security earnings linked to the Current Population Survey. From the late 1970s to the mid-1990s, there is a strong negative trend in earnings volatility driven by a decline in transitory variance. From the mid-1990s, there is relative stability in trends of male earnings volatility due to an increase in the variance of permanent shocks. Cohort analyses indicate that earnings volatility is U-shaped, driven by large permanent shocks early and later in the life cycle.

Source: Journal of Labor Economics

DOI: 10.1086/732667

Authors: Richard Blundell, Christopher R. Bollinger, Charles Hokayem, James P. Ziliak

Institutions: Institute for Fiscal Studies, University College London, University of Kentucky, United States Census Bureau

Language: English

Topic: Labor market dynamics and wage inequality

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Reduced inequalities

Open Access status: hybrid

OpenAlex ID: W4401504155

FWCI: 1.072

Cites: 37

Cited by: 3

Related to: 10