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The baby booms legacy: relative wages in the twenty-first century.

American Economic Review 1988
authors assess the baby boom generations impact on relative wages in the United States in the year 2020. Time series data for the period 1955-1984 from the MIT-Penn-SSRC data bank are used. An econometric model of the demand for workers in eight age-sex categories is estimated. The simulation results indicate that wages of prime-age workers will not deteriorate in relation to older workers as a result of the aging of the baby boom cohort. Conclusions for teens cannot be drawn. general result does not hold for women however. Prime-age women are predicted to lose in comparison with older workers and with men increasing rather than reducing wage differentials by sex ceteris paribus. (EXCERPT)