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What Is the Age-Earnings Cycle? What Is the Typical Age-Earnings

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Essay

What is the age-earnings cycle? What is the typical age-earnings profile for a U.S. resident?


Definitions:

Income Quintile

A statistical measure dividing the population into five equal groups according to income levels.

Excise Tax

A charge imposed on certain products, services, or transactions, commonly integrated into the cost of the item.

Tax Incidence

The analysis of the effect of a particular tax on the distribution of economic welfare, essentially who bears the burden of a tax.

Buyers

Individuals or organizations that purchase goods or services for personal use, resale, or as inputs in the production of other goods.

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