It is interesting to note that although there are significant differences in compensation for workers across the employer size, yet the
age earnings profiles follow the life-cycle pattern in both categories where income increases with age for some time, reaches at the peak and then declines.
To get an indication of how much the age earnings profiles changed between 1979 and 1989, we predict earnings for each education, year and sex group for each year of age from age 20 to age 70.
A simple comparison of how the age earnings profiles have changed can be seen by examining the sum of earnings from age 20 to age 70.
The forensic economist needs to be careful about using age earnings profiles for women, since for younger women, earnings are quite similar to those of men, and are likely to remain close to the level of male earnings over time.
