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Earnings Dynamics and Inequality in EU, 1994-2001

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  • Denisa Maria Sologon
  • Cathal O'Donoghue

Abstract

This paper uses ECHP for 14 EU countries to explore the dynamic structure of individual earnings and the extent to which changes in cross-sectional earnings inequality reflect transitory or permanent components of individual lifecycle earnings variation. Increases in inequality reflect increases in permanent differentials in four countries and increases in both components in two. Decreases in inequality reflect decreases in transitory differentials in four countries, in permanent differentials in two and in both components in rest. In general, increases in inequality are accompanied by decreases in mobility, whereas only in three countries the increase in mobility is determined by the decrease in inequality.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.98171.de/diw_sp0184.pdf
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Bibliographic Info

Paper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers on Multidisciplinary Panel Data Research with number 184.

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Length: 58 p.
Date of creation: 2009
Date of revision:
Handle: RePEc:diw:diwsop:diw_sp184

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Related research

Keywords: Panel data; wage distribution; inequality; mobility;

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Cited by:
  1. Aedin Doris & Donal O'Neill & Olive Sweetman, 2010. "Identification of the Covariance Structure of Earnings using the GMM Estimator," Economics, Finance and Accounting Department Working Paper Series, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth n208-10.pdf, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth.
  2. Sologon, Denisa Maria & O'Donoghue, Cathal, 2010. "Earnings Dynamics and Inequality among Men in Luxembourg, 1988-2004: Evidence from Administrative Data," IZA Discussion Papers 5014, Institute for the Study of Labor (IZA).

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