Recent development of explicit theoretical and empirical earnings functions from life cycle human capital investment models increases the potential to explain existing earnings distributions and to predict changes in it. The purpose of this paper is to suggest how these earnings functions can be...

The purpose of this paper is to develop and test a dynamic labor supply model which incorporates the essential features of these previous models. The issues of permanent and transitory effects and of cross section versus time series can be addressed much more directly given the recent...