Type | Working Paper |
Title | Life-cycle wage growth across countries |
Author(s) | |
Publication (Day/Month/Year) | 2015 |
URL | http://www.econ.yale.edu/~nq3/NANCYS_Yale_Website/resources/papers/LMPQS_JPER1.pdf |
Abstract | 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 use these data to 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 experience-wage profiles on average than those with less education; 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 over the life cycle and theories in which more severe search frictions in poor countries prevent workers from climbing the job ladder. |