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Age-Earnings Profile

The age-earnings profile describes the relationship between average individual earnings and an individual’s age. At any age, earnings depend on personal characteristics of the earner that contribute to that person’s human capital, most particularly the individual’s level of education. For a given level of education, earnings generally rise with age as a worker gains more experience. Similarly, at a given age, more highly educated people typically earn more than do the less educated. From the viewpoint of an educator, understanding the quantitative nature of the relationship between earnings, on the one hand, and age and education, on the other, is useful in helping students understand the economic value of an education. More education leads not only to higher starting salaries but also to more rapid ...

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