Statistical methods for the analysis of earnings data


In the complicated and technical process of present day collective bargaining comparisons of wages and salaries are done by more and more refined methods. Similar comparisons are central both in professional and political debate about income distributions and inequality in standard of living. Studies in the structure of earnings are also important for the analysis of consumption and savings behavior and for educational planning.

In this study two different (but related) approaches are suggested for the analysis of earnings data. The first approach is a combined time series and cross sectional analysis of age-earnings profiles by educational qualification, the second is a more detailed investigation of the earnings structure in a cross section. As an illustration they are applied to salary data from Swedish industry.

A profile for a cohort of employees is obtained as the sum of an initial salary and successive salary increments. These increments are explained by a general salary increase, an increase due to experience and an increase due to age. The applicability of the profile model is illustrated by a comparative analysis of profiles for employees with various educational qualifications, including calculations of life-time salaries.

In the cross sectional analysis salary differences are estimated due to job, branch of industry and cost of living area in addition to age and education. Furthermore, the stability of the salary structure is investigated in a comparison between four cross sections from the period 1957-1968.

In the book there are also included chapters on institutional background, labour composition and mobility and the statistical data used.

Elgar Companion to

Social Capital and Health

Martin Ljunge okt 2018.jpg

Martin Ljunge, IFN, is the author of a chapter, "Trust promotes health: addressing reverse causality by studying children of immigrants", in a new book edited by Sherman Folland and Eric Nauenberg. The cutting edge of research is presented, covering the ever-expanding social capital field.

About the book


Seminars organized by IFN


To present ongoing research informal brown-bag seminars are held on Mondays at 11:30 am. This is an opportunity for IFN researchers to test ideas and results.

Academically oriented seminars are most of the time held on Wednesdays at 10 am. At these events researchers from IFN and other institutions present their research.

In addition, IFN organizes seminars open to the public. Topics for these are derived from the IFN research.

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