The Price of Experience

65 Pages Posted: 8 Sep 2014

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: September 2014

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, demographic changes alone can account for the large movements of the return to experience over the last four decades, for the differential dynamics of the age premium across education groups emphasized by Katz and Murphy (1992), for the differential dynamics of the college premium across age groups emphasized by Card and Lemieux (2001), and for the changes in cross-sectional and cohort-based life-cycle profiles emphasized by Kambourov and Manovskii (2005).

Suggested Citation

Jeong, Hyeok and Kim, Yong and Manovskii, Iourii, The Price of Experience (September 2014). NBER Working Paper No. w20457. Available at SSRN: https://ssrn.com/abstract=2492968

Hyeok Jeong (Contact Author)

KDI School of Public Policy and Management ( email )

P.O. Box 184
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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
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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

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