This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window

American Economic Review: Vol. 96 No. 4 (September 2006)

AER Volume. 96, Issue 4 | leftPrevious ArticleNext Articleright

Expand

Quick Tools:

Print Article Summary Email Link to this Article Export Citation
Sign up for Email Alerts Follow us on Twitter

Explore:

AER - All Issues

AER Forthcoming Articles

Life-Cycle Variation in the Association between Current and Lifetime Earnings

Article Citation

Haider, Steven, and Gary Solon. 2006. "Life-Cycle Variation in the Association between Current and Lifetime Earnings." American Economic Review, 96(4): 1308-1320.

DOI: 10.1257/aer.96.4.1308

Abstract

Researchers in a variety of important economic literatures have assumed that current income variables as proxies for lifetime income variables follow the textbook errors-in-variables model. In our analysis of Social Security records containing nearly career-long earnings histories for the Health and Retirement Study sample, we find that the relationship between current and lifetime earnings departs substantially from the textbook model in ways that vary systematically over the life cycle. Our results can enable more appropriate analysis of, and correction for, errors-in-variables bias in any research that uses current earnings to proxy for lifetime earnings. (JEL D31, D91)

Article Full-Text Access

Full-text Article

Additional Materials

Download Data Set (140.14 KB)

Authors

Haider, Steven
Solon, Gary


American Economic Review



AEA Member Login:


Quick Tools:

Email Link to this Issue

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)

Explore:

AER - All Issues

AER - Forthcoming Articles

AEA Journals

Virtual Field Journals

AEAweb | AEA Journals | Contact Us