THE DYNAMICS OF EARLY-CAREER WAGE GROWTH IN THE UNITED STATES: AN ANALYSIS OF AGE, EDUCATION, AND GENDER EFFECTS (2012–2024)

Abstract

This study examines earnings patterns for individuals in full-time work between the ages of twenty-five and thirty-four in the period from two thousand twenty to two thousand twenty-four. The period shows significant changes in the market for work. The analysis uses data from IPUMS CPS and follows a framework relating to development of work ability. The approach uses measures for each separate age to follow change in earnings. The analysis includes factors relating to individuals, work positions, and locations as other variables. Results show that earnings increase with age in a pattern that is significant and positive. This increase shows marked development following age 28. The pattern reaches the main level at age 34. The analysis indicates two main structures that produce differences between groups. The study finds a substantial difference relating to education level that shows increase over time. This difference is particularly large for individuals with degrees following initial degrees. The analysis also reveals a gap between earnings for different groups that remains at 4.7%. This gap appears in data that include other variables as controls. The difference remains across the analysis. The findings suggest that returns relating to time in work differ by level of education. The study shows that these returns are divided into separate patterns. This indicates that education level affects how experience relates to earnings.