In this way we are keeping the
age-earnings profile for the worker (by gender and education) constant and only changing the pension conditions in each occupation.
For instance, the influx of a relatively large cohort of younger, lower-paid workers could reduce the growth of average wages, even if no individual workers are earning less than their
age-earnings profile would predict.
n] we must have estimates of the
age-earnings profile.
Results show that experience paid off more to male workers than to female, and the returns to experience declined more rapidly as age increased, supported the concavity of the
age-earnings profile.
Finally, the
age-earnings profile for teachers would more closely resemble the profile for other professions.
The main prediction is that the
age-earnings profile for overeducated or undereducated workers is steeper than the profile for exactly educated workers.
One may argue, however, that changes in earnings premium could be affected by changes in the
age-earnings profile across educational groups.
One interesting attribute of female law graduate earnings is the relatively "steep"
age-earnings profile compared with other female professionals save M.
This implies that experience had a smaller effect on Muhajir earnings that it did on those from the other ethnic groups, AGE-SQUARED was negative and highly significant in all ethnic groups confirnung the concavity of the
age-earnings profile.
Chapter 4 considers the now well-established empirical fact of an upward sloping
age-earnings profile and the question of mandatory retirement.
The positive (and statistically significant) coefficient of the interaction term "Years since migration * Aussiedler" together with the insignificant coefficient of the interaction term "Years since migration * Ubersiedler" suggests that Aussiedler have a steeper
age-earnings profile than Ubersiedler.
The steep
age-earnings profile encourages long job tenures by reducing the risk that workers will leave a company to work elsewhere.
