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Long Term Earnings Inequality, Earnings Instability and Temporary Employment in Spain: 1993–2000

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  • Cervini-Plá, María

    ()
    (Universitat de Girona)

  • Ramos, Xavi

    ()
    (Universitat Autònoma de Barcelona)

Abstract

This paper provides a longitudinal perspective on changes in Spanish male earnings inequality for the period 1993-2000, by decomposing the earnings covariance structure into its permanent and transitory parts. According to the Spanish sample of the European Community Household Panel, cross-sectional earnings inequality of male full-time employees falls over the second half of the Nineties. The longitudinal analysis shows that such decline was determined by a decrease in earnings instability and an increase of the permanent earnings component. Given the marked decline in temporary employment over the sample period, we also examine the effect of the type of contract on earnings variance components, and we find that workers with fixed-term contract have on average more instability than workers with permanent contract. This evidence suggests that the decline in temporary employment is responsible for the decreasing earnings instability.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3538.

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Length: 25 pages
Date of creation: Jun 2008
Date of revision:
Publication status: published online in: British Journal of Industrial Relations, 2011; [Early View]
Handle: RePEc:iza:izadps:dp3538

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Keywords: Spain; minimum distance; temporary employment; covariance structure; earnings instability; permanent and transitory differences; earnings dynamics;

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References

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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. Ada Ferrer-i-carbonell & X. Ramos & M. Oviedo, 2013. "GINI Country Report: Growing Inequalities and their Impacts in Spain," GINI Country Reports, AIAS, Amsterdam Institute for Advanced Labour Studies spain, AIAS, Amsterdam Institute for Advanced Labour Studies.

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