Age-Earning Profiles: Refinement and Applications

Abundant research exists on age-earnings profiles and the positive correlation between experience and earnings. However, much of this research relies on imprecise mathematical models or limited data sources. This paper utilizes rich data offerings of the American Community Survey to generate age-earnings profiles delineated by gender, education, and disability status. In addition to expected trends and relationships, the results show higher levels of growth in the establishment phase of career development for the most educated. Further, we find that males not only earn more than their equally educated female counterparts but also enjoy greater increases in earnings from higher levels of education. Additionally, we show that the decrement in earnings from disability increases with educational level.