In many economic models a central variable of interest is lifetime or permanent income which is not observed in survey data sets and typically proxied by annual income information. To assess the quality of such approximations, we use a unique source of lifetime earnings - the German pension...

This study estimates separate selectivity bias corrected wage equations for formal and informal workers in rural and urban Mexico using data from the Mexican Family Life Survey (MxFLS). We control for different potential selection patterns using Probit and Multinominal logit models in the first...

This study provides strong evidence for an increase in wage inequality induced by skillbiased technological change in the UK manufacturing industry between 1991 and 2006. Using individual level data from the BHPS and industry level data from the OECD, wage regressions are estimated which...

This paper uncovers ongoing trends in idiosyncratic earnings volatility across generations by decomposing residual earnings auto-covariances into a permanent and a transitory component. We employ data on complete earnings life cycles for prime age men born 1935 through 1974 that covers earnings...