Why Are Life-Cycle Earnings Profiles Getting Flatter?


Life-cycle earnings profiles are becoming flatter. The earnings growth over the life cycle for workers in the 1980 cohort was substantially less than the earnings growth for workers in the 1940 cohort (Table 1). We divide a worker’s life cycle into two periods: ages 20 to 39 and ages 40 to 59. We refer to workers aged 20-39 in year t as cohort t. We compute… (More)


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