Interpreting Aggregate Wage Growth: The Role of Labor Market Participation

S-Tier
Journal: American Economic Review
Year: 2003
Volume: 93
Issue: 4
Pages: 1114-1131

Authors (3)

Richard Blundell (University College London (UCL...) Howard Reed (not in RePEc) Thomas M. Stoker (not in RePEc)

Score contribution per author:

2.681 = (α=2.01 / 3 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

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. (JEL C34, E24, J31)

Technical Details

RePEc Handle
repec:aea:aecrev:v:93:y:2003:i:4:p:1114-1131
Journal Field
General
Author Count
3
Added to Database
2026-01-24