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Dynamics in transitory and permanent variation of wages in Germany

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  • Myck, Michal
  • Ochmann, Richard
  • Qari, Salmai

Abstract

We employ covariance structure models to decompose the cross-sectional variance of male wages in Germany into its permanent and transitory parts. We find that the steep growth of cross-sectional inequality during the early 2000s is predominantly driven by transitory factors.

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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 113 (2011)
Issue (Month): 2 ()
Pages: 143-146

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Handle: RePEc:eee:ecolet:v:113:y:2011:i:2:p:143-146

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Web page: http://www.elsevier.com/locate/ecolet

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Keywords: Variance decomposition; Wage inequality; Wage dynamics;

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