Research

Cohort Effects in Age-Earnings Profiles for Women: Implications for Forensic Analysis

Forensic economists typically estimate age-earnings profiles using cross-sectional data from one point in time. This approach leads to inaccurate predictions for younger women. Cohorts of younger women have more education and better access to higher paying jobs than their predecessors. Consequently as they age, their earnings experience is likely to be different than the cohorts of women preceding them. We measure the divergence between estimates using the traditional approach and those obtained when accounting for cohort effects. While the divergence is relatively small early in women's careers, it becomes more pronounced — more than 10 percent — as women move into the later parts of their working lives.

Keywords:

wage differentials; cohort effects; age-earnings profile; forensic economics

Publication Information
Article Title: Cohort Effects in Age-Earnings Profiles for Women: Implications for Forensic Analysis
Journal: Eastern Economic Journal (Jun, 2010)
36(3)
Author(s): Cushing, Matthew J;  Rosenbaum, David I
Researcher Information
    
Cushing, Matthew J
Cushing, Matthew J
Professor
Expertise:
  • Labor Economics
  • Econometrics
  • Macroeconomics
Economics
HLH 525 U
P.O. Box 880489
University of Nebraska-Lincoln
Lincoln, NE 68588-0489, USA
Phone: (402) 472-2323
Fax: (402) 472-4426
mcushing1@unl.edu
Rosenbaum, David I
Rosenbaum, David I
Professor
Expertise:
  • Forensic Economics
  • Applied Microeconomics
  • Cost-Benefit Analysis
Economics
HLH 525 J
P.O. Box 880489
University of Nebraska-Lincoln
Lincoln, NE 68588-0489, USA
Phone: (402) 472-2318
Fax: (402) 472-4426
drosenbaum1@unl.edu