Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/82552
Authors: 
Gustavsson, Magnus
Year of Publication: 
2008
Series/Report no.: 
Working Paper, Department of Economics, Uppsala University 2008:14
Abstract: 
Using a large Swedish longitudinal database for the period 1982-2005, I estimate and compare within-group inequality in persistent and transitory earnings among men with high-school and college degrees. Analyses of inequality over the life cycle reveal that experience-variance profiles of persistent earnings are very similar across the two education groups and also consistent with standard human capital models of on-the-job training. Transitory earnings shocks display a marked U-shaped variance pattern over the life-cycle for both groups, but are clearly larger for high-school graduates and also account for a larger proportion of their overall variance. Analyses of changes in within-group inequality over time, holding life-cycle effects constant, show that high-school and college graduates have been subject to similar trend growths in both persistent and transitory earnings differentials between 1982 and 2005.
Subjects: 
Permanent inequality
Earnings instability
Life-cycle earnings
Schooling
JEL: 
C33
D31
J39
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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