This paper investigates the importance of heterogeneity in the labor earning shock processes. We analyze the earning shock process for both male and female workers in several countries. We argue that unlike time series analysis, in a life cycle model the forecasting horizon is finite and in...

The Netherlands is an example of a highly institutionalized labor market that places considerable attention on equity concerns. The government and social partners (unions and industry associations) seek to adjust labor market arrangements to meet the challenges of increased international...