Cohort effects in age-earnings profiles for women: Implications for forensic analysis

Matthew J. Cushing, David I. Rosenbaum

Research output: Contribution to journalArticle

1 Scopus citations

Abstract

Forensic economists typically estimate age-earnings profiles using cross-sectional data from one point in time. This approach leads to inaccurate predictions for younger women. Cohorts of younger women have more education and better access to higher paying jobs than their predecessors. Consequently as they age, their earnings experience is likely to be different than the cohorts of women preceding them. We measure the divergence between estimates using the traditional approach and those obtained when accounting for cohort effects. While the divergence is relatively small early in women's careers, it becomes more pronounced - more than 10 percent- as women move into the later parts of their working lives.

Original languageEnglish (US)
Pages (from-to)353-369
Number of pages17
JournalEastern Economic Journal
Volume36
Issue number3
DOIs
StatePublished - Jun 2010

Keywords

  • age-earnings profile
  • cohort effects
  • forensic economics
  • wage differentials

ASJC Scopus subject areas

  • Economics and Econometrics

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