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The cycle of earnings inequality: evidence from Spanish social security data

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  • Stéphane Bonhomme

    (CEMFI)

  • Laura Hospido

    ()
    (Banco de España)

Abstract

We use detailed information on labor earnings and employment from Social Security records to document earnings inequality in Spain from 1988 to 2010. Male earnings inequality was strongly countercyclical: it increased around the 1993 recession, showed a substantial decrease during the 1997-2007 expansion and then a sharp increase during the recent recession. These developments were partly driven by the cyclicality of employment and earnings in the lower-middle part of the distribution. We emphasize the importance of the housing boom and subsequent housing bust, and show that demand shocks in the construction sector significantly impacted aggregate labor market outcomes

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File URL: http://www.bde.es/f/webbde/SES/Secciones/Publicaciones/PublicacionesSeriadas/DocumentosTrabajo/12/Fich/dt1225e.pdf
File Function: First version, July 2012
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Bibliographic Info

Paper provided by Banco de Espa�a in its series Banco de Espa�a Working Papers with number 1225.

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Length: 70 pages
Date of creation: Jul 2012
Date of revision:
Handle: RePEc:bde:wpaper:1225

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Keywords: Earnings inequality; social security data; unemployment; business cycle;

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  1. Juan José Dolado & Carlos García-Serrano & Juan F. Jimeno, . "Drawing Lessons from the Boom of Temporary Jobs in Spain," Working Papers 2001-11, FEDEA.
  2. Jonathan Heathcote & Fabrizio Perri & Giovanni L. Violante, 2009. "Unequal we stand: an empirical analysis of economic inequality in the United States, 1967-2006," Staff Report 436, Federal Reserve Bank of Minneapolis.
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  8. David H. Autor & Lawrence F. Katz & Melissa S. Kearney, 2005. "Rising Wage Inequality: The Role of Composition and Prices," NBER Working Papers 11628, National Bureau of Economic Research, Inc.
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Cited by:
  1. Jesus Fernandez-Villaverde & Luis Garicano & Tano Santos, 2013. "Political Credit Cycles: The Case of the Euro Zone," NBER Working Papers 18899, National Bureau of Economic Research, Inc.
  2. Raquel Carrasco & J. Ignacio García Pérez, 2012. "Economic Conditions and Employment Dynamics of Immigrants versus Natives: Who Pays the Costs of the “Great Recession”?," Working Papers 12.13, Universidad Pablo de Olavide, Department of Economics.
  3. Augusto de la Torre & Samuel Pienknagura & Eduardo Levy Yeyati, . "Latin America and the Caribbean as Tailwinds Recede : In Search of Higher Growth, LAC Semiannual Report, April 2013," World Bank Other Operational Studies 13266, The World Bank.

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