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Wage mobility in Austria 1986-1996

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  • Hofer, Helmut
  • Weber, Andrea

Abstract

We examine wage mobility of Austrians, using 1986-1996 data from administrative sources. For the evaluation of wage mobility we calculate mobility measures based on transitions between quintiles in the wage distribution. A second group of indices measure wage mobility by the extent to which averaging wages over a longer period decreases cross sectional inequality. We find that mobility reduces wage inequality by 7 per cent over a six-year period. This equalising effect of wage mobility is only half as large as in other OECD countries. Considering an 11 year horizon for Austria implies a reduction of inequality of 10 per cent. Mobility is high only for young workers and for workers who changed their employer at least once during the observation period. Decomposing the sample into sex, age and worker-type groups and comparing within- and between-group mobility shows that most of the equalising effect of mobility occurs within the groups.

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Bibliographic Info

Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 9 (2002)
Issue (Month): 4 (September)
Pages: 563-577

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Handle: RePEc:eee:labeco:v:9:y:2002:i:4:p:563-577

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References

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  1. Michael F. Förster, 2000. "Trends and Driving Factors in Income Distribution and Poverty in the OECD Area," OECD Labour Market and Social Policy Occasional Papers 42, OECD Publishing.
  2. Moshe Buchinsky & Jennifer Hunt, 1996. "Wage Mobility in the United States," NBER Working Papers 5455, National Bureau of Economic Research, Inc.
  3. Teulings,Coen & Hartog,Joop, 1998. "Corporatism or Competition?," Cambridge Books, Cambridge University Press, number 9780521590730, April.
  4. Geweke, John & Marshall, Robert C & Zarkin, Gary A, 1986. "Mobility Indices in Continuous Time Markov Chains," Econometrica, Econometric Society, vol. 54(6), pages 1407-23, November.
  5. Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-25, April.
  6. Beblo, Miriam & Knaus, Thomas, 2000. "Measuring Income Inequality in Euroland," IRISS Working Paper Series 2000-10, IRISS at CEPS/INSTEAD.
  7. Hofer, Helmut & Pichelmann, Karl & Schuh, Andreas-Ulrich, 1998. "Price and Quantity Adjustments in the Austrian Labour Markets," Economics Series 57, Institute for Advanced Studies.
  8. Machin, Stephen, 1996. "Wage Inequality in the UK," Oxford Review of Economic Policy, Oxford University Press, vol. 12(1), pages 47-64, Spring.
  9. Fuess, Jr., Scott M. & Millea, Meghan, 2001. "Pay and Productivity in a Corporatist Economy: Evidence from Austria," IZA Discussion Papers 244, Institute for the Study of Labor (IZA).
  10. Frank Cowell & Christian Schluter, 1998. "Income mobility : a robust approach," LSE Research Online Documents on Economics 2210, London School of Economics and Political Science, LSE Library.
  11. repec:sae:niesru:v:166:y::i:1:p:87-96 is not listed on IDEAS
  12. Shorrocks, Anthony, 1978. "Income inequality and income mobility," Journal of Economic Theory, Elsevier, vol. 19(2), pages 376-393, December.
  13. Levy, Frank & Murnane, Richard J, 1992. "U.S. Earnings Levels and Earnings Inequality: A Review of Recent Trends and Proposed Explanations," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1333-81, September.
  14. Aaberge, Rolf & Björklund, Anders & Jäntti, Markus & Palme, Mårten & Pedersen, Peder & Smith, Nina & Wennemo, Tom, 1996. "Income Inequality and Income Mobility in the Scandinavian Countries Compared to the United States," Working Paper Series in Economics and Finance 98, Stockholm School of Economics, revised Aug 2002.
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Cited by:
  1. Paul Gregg & Claudia Vittori, 2008. "Exploring Shorrocks Mobility Indices Using European Data," The Centre for Market and Public Organisation 08/206, Department of Economics, University of Bristol, UK.
  2. Aretz, Bodo, 2013. "Gender differences in German wage mobility," ZEW Discussion Papers 13-003, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  3. Andreas Kuhn, 2009. "Demand for Redistribution, Support for the Welfare State, and Party Identification in Austria," NRN working papers 2009-17, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
  4. Andreas Kuhn, 2009. "Demand for Redistribution, Support for the Welfare State, and Party Identification in Austria," IEW - Working Papers 440, Institute for Empirical Research in Economics - University of Zurich.
  5. Brunner, Beatrice & Kuhn, Andreas, 2009. "To Shape the Future: How Labor Market Entry Conditions Affect Individuals' Long-Run Wage Profiles," IZA Discussion Papers 4601, Institute for the Study of Labor (IZA).
  6. Ronald Bachmann & Peggy Bechara & Sandra Schaffner, 2012. "Wage Inequality and Wage Mobility in Europe," Ruhr Economic Papers 0386, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  7. Denisa Maria Sologon & O'Donoghue, Cathal, 2011. "Earnings Mobility in Europe: 1994-2001 : Do more flexible labour markets experience a higher earnings mobility?," MERIT Working Papers 070, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  8. Beatrice Brunner & Andreas Kuhn, 2009. "To shape the future: How labor market entry conditions affect individuals' long-run wage profiles," IEW - Working Papers 457, Institute for Empirical Research in Economics - University of Zurich.
  9. Beartice Brunner & Andreas Kuhn, 2009. "To Shape the Future: How Labor Market Entry Conditions Affect Individuals’s Long-Run Wage Profiles," NRN working papers 2009-29, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.

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