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Earnings Dynamics and Inequality in EU, 1994-2001

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Author Info
Denisa Maria Sologon
Cathal O'Donoghue

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

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

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

Find related papers by JEL classification:
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J60 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - General

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This page was last updated on 2009-11-24.

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