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Lifetime Earnings (lifetime + earning)

Distribution by Scientific Domains

Business, Economics, Finance and Accounting	66%
Humanities and Social Sciences	22%

Selected Abstracts

RETIREMENT WEALTH AND LIFETIME EARNINGS,

INTERNATIONAL ECONOMIC REVIEW, Issue 2 2007
Lutz Hendricks
This article argues that a satisfactory theory of wealth inequality should account not only for the marginal distribution of wealth, but also for the joint distribution of wealth and earnings. The article describes the joint distribution of retirement wealth and lifetime earnings in the Panel Study of Income Dynamics. It then evaluates the ability of a stochastic life-cycle model to account for key features of this distribution. The life-cycle model fails to account for three key features of the data. (1) The correlation between lifetime earnings and retirement wealth is too high. (2) The wealth gaps between earnings rich and earnings poor households are too large. (3) Wealth inequality among households with similar lifetime earnings is too small. Models in which households differ in rates of return or time preferences account much better for the joint distribution of retirement wealth and lifetime earnings. [source]

Lifetime Earnings, Discount Rate, Ability and the Demand for Post,compulsory Education in Men in England and Wales

BULLETIN OF ECONOMIC RESEARCH, Issue 3 2002
Daniel JohnsonArticle first published online: 16 DEC 200
Human capital theory suggests educational investments are made based on expected returns over the lifetime. Most other work in this field, particularly using British data, is based on demand models estimated in reduced form, with no earnings measures, or crudely constructed earnings measures, based on one or two earnings observations per individual. We present a structural model of demand for educational investment which includes estimates of earnings paths for educational options as determinants of educational choice. This provides us with directly interpretable parameter estimates. The discount rate is also determined within our demand model. Ability controlled earnings profiles are estimated by matching individuals from the General Household Survey to individuals in similar occupations from the National Child Development Survey (NCDS). Our results show that expected earnings profiles vary according to observed ability and educational choice. Results from the demand model show that expected lifetime earnings have a significant impact on educational choice. Other socio,demographic factors, particularly social class, also exhibit significant influences on the education decision. We estimate the discount rate to be lower than reported in other studies. [source]

Public Pension Reform in the United Kingdom: What Effect on the Financial Well-Being of Current and Future Pensioners?,

FISCAL STUDIES, Issue 1 2005
Richard Disney
Abstract Unlike many tax and benefit changes, reforms to public pension programmes take many years to have their full effect. This paper examines the effect of reforms to the public pension programme in the United Kingdom on the state retirement incomes of current generations of pensioners and on the prospective state incomes of future generations of pensioners. We show that, for an individual with lifetime earnings close to male average earnings, the UK pension system is at its most generous to those reaching the state pension age around the year 2000, but that the introduction of the state second pension and the pension credit postpones this peak for individuals on lower incomes and for those with substantial periods out of paid employment spent with caring responsibilities. We also consider how the ,mix' of benefits, particularly between the contributory and income-tested sectors, could change over time, and the impact that this would have on incentives to save for retirement. [source]

RETIREMENT WEALTH AND LIFETIME EARNINGS,

Return Migration by German Guestworkers: Neoclassical versus New Economic Theories

INTERNATIONAL MIGRATION, Issue 4 2002
Amelie Constant
Neoclassical economics and the new economics of labour migration posit very different motivations for international migration. The former assumes that people move abroad permanently to maximize lifetime earnings whereas the latter assumes they leave temporarily to overcome market deficiencies at home. As a result, the two models yield very different conceptualizations of return migration. We draw upon each theoretical model to derive predictions about how different variables are likely to influence the probability of return migration. We use data from the German Socio,economic Panel to test specific hypotheses derived from each model. Finding some support for both perspectives, we suggest that migrants may be heterogeneous with respect to their migratory motivations. If so, then parameters associated with the determinants of return migration in any population of international migration will reflect a blending of parameters associated with two distinct economic rationales. Equations estimated separately for remitting and non,remitting migrants lend support to this interpretation, meaning there may not be one unitary process of return migration, but several. [source]

Calculating compensation for loss of future earnings: estimating and using work life expectancy

JOURNAL OF THE ROYAL STATISTICAL SOCIETY: SERIES A (STATISTICS IN SOCIETY), Issue 4 2008
Zoltan Butt
Summary., Where personal injury results in displacement and/or continuing disability (or death), damages include an element of compensation for loss of future earnings. This is calculated with reference to the loss of future expected time in gainful employment. We estimate employment risks in the form of reductions to work life expectancies for the UK workforce by using data from the Labour Force Survey with the purpose of improving the accuracy of the calculation of future lifetime earnings. Work life expectancies and reduction factors are modelled within the framework of a multiple-state Markov process, conditional on age, sex, starting employment state, educational attainment and disability. [source]

Production, Reproduction, and Education: Women, Children, and Work in a British Perspective

POPULATION AND DEVELOPMENT REVIEW, Issue 3 2002
Heather Joshi
This article reviews findings of studies by the author and colleagues on relationships between women's work and the reproduction of the British population based on data for female birth cohorts 1922,70. The studies address three questions: (1) How do children affect women's paid work and lifetime earnings? (2) How does women's employment affect the quantity of children born? (3) How does women's employment affect the "quality" of children? The answers are affected by the woman's educational attainment. On question 1, childrearing may often halve lifetime earnings, but seldom for the well educated. By contrast, any effects from employment to childbearing are most apparent in the late motherhood of the well educated. Child quality, as assessed by indicators of child development, benefits from maternal education and suffers little from maternal employment. The economic advantages for children in dual-career families are thus unabated. A widening gulf between mothers will tend to polarize the life chances of their children, unless there are more options to combine employment and childrearing, especially including good-quality child care for those who cannot afford the market price. Education is a powerful influence, but does not alone solve all issues of equity, whether between families or between sexes. [source]