The Price of Experience

68 Pages Posted: 17 Dec 2012

See all articles by Hyeok Jeong

Hyeok Jeong

KDI School of Public Policy and Management

Yong Kim

Yonsei University

Iourii Manovskii

University of Pennsylvania - Department of Economics; IZA Institute of Labor Economics

Multiple version iconThere are 2 versions of this paper

Date Written: December 13, 2012

Abstract

We identify a key role of factor supply, driven by demographic changes, in shaping several empirical regularities that are a focus of active research in macro and labor economics. In particular, the large movements of the return to experience over the last four decades are almost perfectly explained by demographic changes alone, with no role attributable to demand shifts. Moreover, these demographic changes account for the differential dynamics of the age premium across education groups emphasized by Katz and Murphy (1992), and the differential dynamics of the college premium across age groups emphasized by Card and Lemieux (2001).

Keywords: Experience Premium, Return to Experience, Wage Dispersion, Consistent

JEL Classification: E24, E25, J24, J31

Suggested Citation

Jeong, Hyeok and Kim, Yong and Manovskii, Iourii, The Price of Experience (December 13, 2012). KDI School of Pub Policy & Management Paper No. 12-09. Available at SSRN: https://ssrn.com/abstract=2188807 or http://dx.doi.org/10.2139/ssrn.2188807

Hyeok Jeong (Contact Author)

KDI School of Public Policy and Management ( email )

P.O. Box 184
Seoul, 130-868
Korea, Republic of (South Korea)
+82-2-880-2921 (Phone)
+82-2-879-1496 (Fax)

Yong Kim

Yonsei University ( email )

Seoul
Korea, Republic of (South Korea)

Iourii Manovskii

University of Pennsylvania - Department of Economics ( email )

Ronald O. Perelman Center for Political Science
133 South 36th Street
Philadelphia, PA 19104-6297
United States
215-898-6880 (Phone)
215-573-2057 (Fax)

HOME PAGE: http://www.econ.upenn.edu/~manovski/

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Register to save articles to
your library

Register

Paper statistics

Downloads
70
Abstract Views
674
rank
317,247
PlumX Metrics