Are earnings profiles steeper than productivity profiles? Evidence from Israeli firm-level data.

We test competing explanations of rising age-earnings profiles by obtaining direct estimates of marginal productivity differentials between workers in different age groups and comparing these to associated earnings differentials, using contemporary data from Israeli manufacturing firms. The results...

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Publicado en:Journal of Human Resources Vol. 30; pp. 89 - 113
Autores principales: Hellerstein, Judith K., Neumark, David
Formato: Artículo
Publicado: University of Wisconsin Press Winter95
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Are earnings profiles steeper than productivity profiles? Evidence from Israeli firm-level data.
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        au:
          Hellerstein, Judith K.
          Neumark, David
      su:
        Age & income
        Labor productivity
        Manufacturing industries
        Cobb-Douglas production function
        Age & employment
        Economics
        Wages
        Israel
      sug:
        subj:
          Israel
          Age & income
          Labor productivity
          Manufacturing industries
          Cobb-Douglas production function
          Age & employment
          Economics
          Wages
      ab: We test competing explanations of rising age-earnings profiles by obtaining direct estimates of marginal productivity differentials between workers in different age groups and comparing these to associated earnings differentials, using contemporary data from Israeli manufacturing firms. The results indicate that, controlling for other productive inputs and firm characteristics, for the unskilled or less-skilled workers who represent most of the workers in our sample, both earnings and productivity profiles are upward sloping. Moreover, these profiles mirror each other closely, and are statistically indistinguishable. However, the estimates of the profiles are sufficiently imprecise that even sizable deviations between point estimates of earnings growth and productivity growth would not be statistically significant. While we view the results as most consistent with a general human capital model of rising earnings profiles over the life cycle, there is not strong evidence with which to reject alternative models. Reprinted by permission of the publisher.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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