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The Dynamics and Inequality of Italian Men’s Earnings: Long-term Changes or Transitory Fluctuations?

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  • Lorenzo Cappellari

Abstract

This paper provides a longitudinal perspective on changes in Italian men’s earnings inequality since the late 1970s by decomposing the earnings autocovariance structure into its long-term and transitory parts. Cross-sectional earnings differentials grew over the period and the longitudinal analysis shows that such growth was determined by the long-term earnings component. Using parameter estimates to analyze low-pay probabilities shows that low-pay persistence and the probability of repeated low-pay episodes grew for all birth cohorts during the early 1990s. Moreover, long-term heterogeneity is found to characterize the earnings distribution of nonmanual workers, accounting for a large part of overall heterogeneity.

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File URL: http://jhr.uwpress.org/cgi/reprint/XXXIX/2/475
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Bibliographic Info

Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

Volume (Year): 39 (2004)
Issue (Month): 2 ()
Pages:

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Handle: RePEc:uwp:jhriss:v:39:y:2004:i:2:p475-499

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Web page: http://jhr.uwpress.org/

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