Budapest Working Papers on the Labour Market BWP - 2008/9
Built upon data from 11 subsequent waves of yearly wage surveys carried out by the National Labour Center in Hungary from 1992 to 2003, the paper examines, with the use of elementary statistical tools, whether or not earnings fluctuations differed in size among groups of employees with different degrees of schooling and experience, and if they did, whether the observed differentials might be related to differences in the respective experience/earnings profiles of those groups. Findings suggests that earnings fluctuations did differ in size across those groups, and that, moreover, they appear to have done so in association with group-specific experience/earnings profiles. Assuming that differences in the observed size of earnings fluctuations are at least partly due to differences in the flexibility/rigidity of the attained market rates of earnings, and that flexibility/rigidity of those rates is a determinant of unemployment, it seems reasonable to suspect that long-discovered systemic differences in unemployment across groups with different degrees of schooling and experience (and, perhaps, across countries as well) might also be related in part to the particular shapes of their experience/earnings profiles.
education and experience earnings differentials experience-earnings profiles trends in earnings fluctuations of earnings