The distribution of income over life: an empirical approach

Abstract

The aim of the present work is to provide new findings looking at the direct link between age and the distribution of earnings. In particular, it studies the general movement of earnings of individuals with their age using different econometric models and panel techniques which explain the relationship between age and earnings. Inequality measures based only on cross-sectional income do not adequately reflect lifetime income inequality. Cohort data for different age groups in Spain over the years 1993 to 2000 are considered using data from the European Community Household Panel (ECHP). The evidence obtained suggests that there exists a strong influence between earnings and age.

Acknowledgements

The author would like to acknowledge the help given by the European Centre for Analysis in Social Sciences of the University of Essex (United Kingdom).