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We usually think of age as an important determinant of earnings in the labor market because as workers age they acquire more experience, thereby making them more valuable to employers. However, this ignores the fact that people can abstain from work for an extended period of time for a multitude of reasons such as raising children or returning to school, and therefore may not accumulate experience while they continue to age. The Survey of Income and Program Participation (SIPP) asks respondents detailed questions about both the individual’s current job and past employment history, which provides the unique opportunity to analyze the associations of age, educational attainment, experience, earnings, and job tenure.
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WORKING PAPER
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