scholarly journals Job Stability, Earnings Dynamics, and Life-Cycle Savings

2020 ◽  
Author(s):  
Moritz Kuhn ◽  
Gasper Ploj
Keyword(s):  
Life Cycle ◽  
Job Stability ◽  
Earnings Dynamics ◽  
Life Cycle Savings

scholarly journals Earnings Losses and Labor Mobility Over the Life Cycle

2018 ◽  
Vol 17 (3) ◽  
pp. 678-724 ◽  
Author(s):  
Philip Jung ◽  
Moritz Kuhn
Keyword(s):  
Labor Market ◽  
Life Cycle ◽  
Job Stability ◽  
Earnings Dynamics ◽  
Worker Flows ◽  
Dislocated Worker ◽  
Earnings Losses ◽  
Main Driver ◽  
Large Worker ◽  
The Individual

Abstract Large and persistent earnings losses following displacement have adverse consequences for the individual worker and the macroeconomy. Leading models cannot explain their size and disagree on their sources. Two mean-reverting forces make earnings losses transitory in these models: search as an upward force allows workers to climb back up the job ladder, and separations as a downward force make nondisplaced workers fall down the job ladder. We show that job stability at the top rather than search frictions at the bottom is the main driver of persistent earnings losses. We provide new empirical evidence on heterogeneity in job stability and develop a life-cycle search model to explain the facts. Our model offers a quantitative reconciliation of key stylized facts about the U.S. labor market: large worker flows, a large share of stable jobs, and persistent earnings shocks. We explain the size of earnings losses by dampening the downward force. Our new explanation highlights the tight link between labor market mobility and earnings dynamics. Regarding the sources, we find that over 85% stem from the loss of a particularly good job at the top of the job ladder. We apply the model to study the effectiveness of two labor market policies, retraining and placement support, from the Dislocated Worker Program. We find that both are ineffective in reducing earnings losses in line with the program evaluation literature.

Family, Community and Long-Term Socioeconomic Inequality: Evidence from Siblings and Youth Peers

2020 ◽  
Author(s):  
Paul Bingley ◽  
Lorenzo Cappellari ◽  
Konstantinos Tatsiramos
Keyword(s):  
Life Cycle ◽  
Socioeconomic Inequality ◽  
Working Life ◽  
Community Effects ◽  
Men And Women ◽  
Sibling Correlation ◽  
Earnings Dynamics ◽  
Sibling Correlations ◽  
Youth Community

Abstract Using administrative data for the population of Danish men and women, we develop an empirical model which accounts for the joint earnings dynamics of siblings and youth community peers. We provide the first decomposition of the sibling correlation of permanent earnings into family and community effects allowing for life cycle dynamics and extending the analysis to consider other outcomes. We find that family is the most important factor influencing sibling correlations of earnings, education and unemployment. Community background matters for shaping the sibling correlation of earnings and unemployment early in the working life, but its importance quickly diminishes.

scholarly journals Life-cycle savings, bequest, and a diminishing impact of scale on growth

2009 ◽  
Vol 33 (9) ◽  
pp. 1639-1647 ◽  
Author(s):  
Carl-Johan Dalgaard ◽  
Martin Kaae Jensen
Keyword(s):  
Life Cycle ◽  
Life Cycle Savings

scholarly journals Longevity and Life-cycle Savings*

2003 ◽  
Vol 105 (3) ◽  
pp. 319-338 ◽  
Author(s):  
David E. Bloom ◽  
David Canning ◽  
Bryan Graham
Keyword(s):  
Life Cycle ◽  
Life Cycle Savings
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