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Wage Mobility in Austria 1986-1996

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Author Info
Hofer, Helmut (Department of Economics and Finance, Institute for Advanced Studies)
Weber, Andrea (Department of Economics and Finance, Institute for Advanced Studies)

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Abstract

We examine wage mobility of Austrians, using 1986-1996 data from administrative sources. For the evaluation of wage mobility we calculate mobility measures based on transitions between quintiles in the wage distribution. A second group of indices measure wage mobility by the extent to which averaging wages over a longer period decreases cross sectional inequality. We find that mobility reduces wage inequality by 7 per cent over a six-year period. This equalising effect of wage mobility is only half as large as in other OECD countries. Considering an 11 year horizon for Austria implies a reduction of inequality of 10 per cent. Mobility is high only for young workers and for workers who changed their employer at least once during the observation period. Decomposing the sample into sex, age and worker-type groups and comparing within- and between-group mobility shows that most of the equalising effect of mobility occurs within the groups.

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File URL: http://www.ihs.ac.at/publications/eco/es-108.pdf
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File Function: First version, 2001
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Publisher Info
Paper provided by Institute for Advanced Studies in its series Economics Series with number 108.

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Length: 20 pages
Date of creation: Oct 2001
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Handle: RePEc:ihs:ihsesp:108

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Related research
Keywords: Wage mobility Shorrock's indices Corporatism

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Find related papers by JEL classification:
J6 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
P52 - Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies

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  1. Levy, Frank & Murnane, Richard J, 1992. "U.S. Earnings Levels and Earnings Inequality: A Review of Recent Trends and Proposed Explanations," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1333-81, September. [Downloadable!] (restricted)
  2. Fuess, Scott M. Jr. & Millea, Meghan, 2001. "Pay and Productivity in a Corporatist Economy: Evidence from Austria," IZA Discussion Papers 244, Institute for the Study of Labor (IZA). [Downloadable!]
  3. Michael F. Förster, 2000. "Trends and Driving Factors in Income Distribution and Poverty in the OECD Area," OECD Labour Market and Social Policy Occasional Papers 42, OECD Directorate for Employment, Labour and Social Affairs. [Downloadable!]
  4. Bourguignon, F. & Morrisson, C. & Atkinson, A.B., 1991. "Empirical Studies of Earnings Mobility," DELTA Working Papers 91-14, DELTA (Ecole normale supérieure).
  5. Hofer, Helmut & Pichelmann, Karl & Schuh, Andreas-Ulrich, 2001. "Price and Quantity Adjustments in the Austrian Labour Market," Applied Economics, Taylor and Francis Journals, vol. 33(5), pages 581-92, April. [Downloadable!] (restricted)
  6. Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-25, April. [Downloadable!] (restricted)
  7. Beblo, Miriam & Knaus, Thomas, 2000. "Measuring Income Inequality in Euroland," IRISS Working Paper Series 2000-10, IRISS at CEPS/INSTEAD. [Downloadable!]
  8. Rolf Aaberge, Anders Björklund, Markus Jäntti, Mårten Palme, Peder J. Pedersen, Nina Smith and Tom Wennemo, 1996. "Income Inequality and Income Mobility in the Scandinavian Countries Compared to the United States," Discussion Papers 168, Research Department of Statistics Norway.
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  9. Shorrocks, Anthony, 1978. "Income inequality and income mobility," Journal of Economic Theory, Elsevier, vol. 19(2), pages 376-393, December. [Downloadable!] (restricted)
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