More Education, Less Volatility? The Effect of Education on Earnings Volatility over the Life Cycle

• 成果类型: Article
• 署名作者: Delaney, Judith M.; Devereux, Paul J.
• 署名单位: University of London; University College London; IZA Institute Labor Economics; University College Dublin; Trinity College Dublin; IZA Institute Labor Economics
• 刊物名称: JOURNAL OF LABOR ECONOMICS
• ISSN/ISSBN: 0734-306X
• DOI: 10.1086/698897
• 发表日期: 2019
• 页码: 101-137
• 关键词: real wages; consumption; EMPLOYMENT; RISK; variance; returns; HEALTH

摘要

Much evidence suggests that having more education leads to higher earnings in the labor market. However, there is little evidence about whether having more education causes employees to experience lower earnings volatility or shelters them from the adverse effects of recessions. We use a large British administrative panel data set to study the impact of the 1972 increase in compulsory schooling on earnings volatility over the life cycle. Our estimates suggest that men exposed to the law change subsequently had lower earnings variability and less procyclical earnings. However, there is little evidence that education affects earnings volatility of older men.