The Great Moderation in Micro Labor Earnings
John Sabelhaus, Jae Song ,
4
( 57 )
Journal of Monetary Economics
391-403
May
2010
Abstract

Between 1980 and the early 1990s the variability of labor earnings growth rates across the prime-age working population fell significantly. This decline and timing are consistent with other macro and micro observations about growth variability that are collectively referred to as the “Great Moderation.” The variability of earnings growth is negatively correlated with age at any point in time, and the U.S. working age population got older during this period because the Baby Boom was aging.

Links to Researchers