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Life cycle wage growth across countries

Lagakos, David, Moll, Benjamin, Porzio, Tommaso, Qian, Nancy and Schoellman, Todd (2018) Life cycle wage growth across countries. Journal of Political Economy, 126 (2). 797 - 849. ISSN 0022-3808

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Identification Number: 10.1086/696225


This paper documents how life cycle wage growth varies across countries. We harmonize repeated cross-sectional surveys from a set of countries of all income levels and then measure how wages rise with potential experience. Our main finding is that experience-wage profiles are on average twice as steep in rich countries as in poor countries. In addition, more educated workers have steeper profiles than the less educated; this accounts for around one-third of cross-country differences in aggregate profiles. Our findings are consistent with theories in which workers in poor countries accumulate less human capital or face greater search frictions over the life cycle.

Item Type: Article
Official URL:
Additional Information: © 2018 by The University of Chicago
Divisions: Economics
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HC Economic History and Conditions
Date Deposited: 06 Nov 2019 15:36
Last Modified: 11 Jul 2024 05:18

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