Interpreting Aggregate Wage Growth: The Role of Labor Market Participation
2003 ◽
Vol 93
(4)
◽
pp. 1114-1131
◽
Keyword(s):
A new and easily implementable framework for the empirical analysis of the relationship between aggregate and individual wages is developed. Aggregate real wages are shown to contain three important bias terms: one associated with the dispersion of individual wages, a second deriving from compositional changes in the (selected) sample of workers, and a third reflecting the distribution of working hours. Their importance for interpreting the path of aggregate wages and of the returns to education for recent experience in Britain is highlighted. A close correspondence between the estimated biases and the patterns of differences shown by aggregate wages is established.
2021 ◽
Vol 16
(4)
◽
pp. 638-669
2009 ◽
Vol 9
(2)
◽
pp. 187-217
◽
Keyword(s):
2015 ◽
Vol 4
(3)
◽
pp. 65-89
◽
Keyword(s):
2021 ◽
Vol 2
(2)
◽
pp. 111-128