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On the Measurement of Wage Mobility and its Decomposition

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  • Audrey Dumas
  • Jacques Silber
  • Michal Weber

Abstract

This paper proposes a new index of relative wage mobility and uses Mincerian earnings function to derive a breakdown of this mobility into components measuring respectively the impact of human capital, differences in rates of return on human capital and unobservable characteristics. This wage mobility index is also decomposed into wage growth, structural mobility (change in wage inequality) and exchange mobility (re-ranking). An empirical illustration is given, based on the 1983 and 1995 Israeli Censuses.

Suggested Citation

  • Audrey Dumas & Jacques Silber & Michal Weber, 2010. "On the Measurement of Wage Mobility and its Decomposition," Annals of Economics and Statistics, GENES, issue 99-100, pages 91-116.
    • Handle: RePEc:adr:anecst:y:2010:i:99-100:p:91-116
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    File URL: http://www.jstor.org/stable/41219161
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    Cited by:

    1. Duval, Laetitia & Wolff, François-Charles, 2015. "Ethnicity and remittances: Evidence from Kosovo," Journal of Comparative Economics, Elsevier, vol. 43(2), pages 334-349.

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