Peder J. Pedersen studied economics at the University of Copenhagen and graduated with a MSc(econ) in 1970. In 1984 he received the Dr.oecon. degree from the University of Aarhus. From 1970 to 1974 he was assistant professor at Copenhagen Business School, and from 1974 to 1983 he was associate professor at University of Aarhus. From 1983 to 1991 he was working as professor of economics at Aarhus Business School. In 1991 he entered a position as professor at University of Aarhus. He has participated in a number of international scientific networks. His current research interests are Incentives and the Labour Market, Income Distribution and Poverty,International Mobility and Pension and Retirement issues. He was a member of the Danish Council of Economic Advisers from 1985 to 1991 and has served on a number of government commissions on labor market issues and social policy. From 2012 he is professor emeritus at the Economics Department in Aarhus. He is employed as part-time research professor at SFI-The Danish National Centre for Social Research in Copenhagen.
He joined IZA as a Research Fellow in September 1999.