Do earnings really decline for older workers?

What is it about?

In this paper we use panel in order to determine whether earnings profiles decline at the end of working life. We examine several hypotheses are examined: overlapping cohorts, job tenure, job-changing, labour supply behaviour, and selectivity bias.

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Photo by Jez Timms on Unsplash

Photo by Jez Timms on Unsplash

Why is it important?

We find no evidence that the process of ageing itself leads to lower earnings as suggested by the cross-section profile.