TY - JOUR

T1 - The effects of cohort size on European earnings

AU - Brunello, Giorgio

PY - 2010/1

Y1 - 2010/1

N2 - I use the cross-country and time variation in the demographic structure of 11 European countries to study how changes in cohort size affect real earnings in Europe. I find that cohort size has a negative and statistically significant effect on earnings, and that this effect is larger for the older age group—aged between 35 and 54—than for the younger group—aged 20 to 34. I also find that earnings are more sensible to changes in cohort size in Southern Europe, which points to a lower degree of substitutability between individuals with the same education but different age. I argue that the uncovered lower substitutability in the Olive Belt of Europe is in line with the higher employment protection that its workers enjoy, at least compared to the workers located in Northern Europe.

AB - I use the cross-country and time variation in the demographic structure of 11 European countries to study how changes in cohort size affect real earnings in Europe. I find that cohort size has a negative and statistically significant effect on earnings, and that this effect is larger for the older age group—aged between 35 and 54—than for the younger group—aged 20 to 34. I also find that earnings are more sensible to changes in cohort size in Southern Europe, which points to a lower degree of substitutability between individuals with the same education but different age. I argue that the uncovered lower substitutability in the Olive Belt of Europe is in line with the higher employment protection that its workers enjoy, at least compared to the workers located in Northern Europe.

KW - Cohort size

KW - Wages

KW - Europe

U2 - 10.1007/s00148-009-0250-y

DO - 10.1007/s00148-009-0250-y

M3 - Journal article

VL - 23

SP - 273

EP - 290

JO - Journal of Population Economics

JF - Journal of Population Economics

SN - 0933-1433

IS - 1

ER -