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Earnings Dynamics and Inequality during Macroeconomic Turbulence: Sweden 1991-1999

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  • Gustavsson, Magnus

    ()
    (Department of Economics)

Abstract

Using a rich longitudinal database, I study the dynamics behind changes in the distribution of annual earnings in Sweden 1991 to 1999. The analysis indicates a systematic increase in persistent earnings differentials during the 1990s; workers with low relative earnings in the beginning of the decade generally have lower relative earnings in the end. The evolution of transitory earnings fluctuations differs between age groups and matters the most for changes in earnings dispersion among younger workers. To shed some light on the role of wages behind the findings for earnings, wage dynamics is also studied. The results indicate that increased persistent wage inequality is one source behind the increase in persistent earnings inequality.

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Bibliographic Info

Paper provided by Uppsala University, Department of Economics in its series Working Paper Series with number 2002:20.

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Length: 41 pages
Date of creation: 05 Dec 2002
Date of revision:
Publication status: Published in Applied Economics, 2007, pages 25-30.
Handle: RePEc:hhs:uunewp:2002_020

Contact details of provider:
Postal: Department of Economics, Uppsala University, P. O. Box 513, SE-751 20 Uppsala, Sweden
Phone: + 46 18 471 25 00
Fax: + 46 18 471 14 78
Email:
Web page: http://www.nek.uu.se/
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Keywords: Earnings dynamics; Earnings inequality; Wage structure;

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References

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  19. Rolf Aaberge & Anders Björklund & Markus Jäntti & Peder J. Pedersen & Nina Smith & Tom Wennemo, 1997. "Unemployment Shocks and Income Distribution How Did the Nordic Countries Fare During their Crises?," Discussion Papers 201, Research Department of Statistics Norway.
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