Scandinavian Working Papers in Economics
UiS Working Papers in Economics and Finance,
University of Stavanger
No 2012/10: Born to Run Behind? Persistent Relative Age Effects on Earnings
Erling Roed Larsen and Ingeborg Solli ()
Additional contact information
Ingeborg Solli: UiS, Postal: University of Stavanger, NO-4036 Stavanger, Norway
Abstract: The relative age effect is an established phenomenon in the literature, but estimates of its strength and duration vary. In order to study the economic magnitude of the effect, we use Norwegian registry data to investigate how birth month affects earnings throughout the full course of life for all Norwegian males born during the period 1940-1949. We examine earnings from 20 to 68 years of age. Our findings suggest that the youngest within a cohort have a relative age disadvantage in early career years that translates into a relative age advantage during late career years. When observing non-discounted life earnings, we find that the two effects cancel out and leave no relative age imprint on life earnings.
Keywords: Birth date effects; life earnings
27 pages, May 30, 2012
Full text files
uis_wps_2012_10_larsen_solli.pdf
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