Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/319144 
Year of Publication: 
2025
Series/Report no.: 
IZA Discussion Papers No. 17875
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We compare wage profiles for STEM-educated and non-STEM-educated individuals over their lifetimes. Using repeated cross-sectional data from Russia, we examine how the dynamics of these types of human capital are affected by technological developments, applying the Age-Period-Cohort decomposition to workers' life cycle wage growth. Additionally, we account for heterogeneity in the impact of institutional quality on lifetime wage profiles. We show that STEM education is associated with flatter wage-experience profiles than non-STEM education, with the most pronounced differences observed among females. The cohort effect, apparently specific to the former Soviet-type economies, reveals itself in devaluing some types of older education, putting non-STEM cohorts educated during the Soviet period at a disadvantage relative to those with STEM education. Importantly, in the Russian case, the age/experience effects act in the direction opposite to the cohort effects, rendering the cross-sectional analysis somewhat misleading. Finally, wage-experience profiles for males with non-STEM education are steeper in regions with weak institutions than in regions with stronger institutions.
Subjects: 
age-period-cohort decomposition
life-cycle wage growth
wage
human capital
STEM
Russia
JEL: 
E24
J24
J31
O33
O43
Document Type: 
Working Paper

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