On the Covariance Structure of Earnings and Hours Changes / John M. Abowd, David Card.

Format:

Book

Author/Creator:

Abowd, John M.

Contributor:

National Bureau of Economic Research.

Card, David.

Series:

Working Paper Series (National Bureau of Economic Research) no. w1832.

NBER working paper series no. w1832

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1986.

Summary:

This paper presents an empirical analysis of changes in individual earnings and hours over time. Using longitudinal data from three panel surveys,we catalogue the main features of the covariance structure of changes in earnings and hours. We then present an interpretation of these features in terms of both a life-cycle labor supply model and a fixed-wage labor contract model. Our major findings are:(1) there is a remarkable similarity in the covariance structure of earnings and hours changes across the three surveys; and (2) apart from simple measurement error, the major component of variance in earnings and hours affects earnings and hours equi-proportionately.

Notes:

Print version record

February 1986.