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Increased Opportunity to Move Up the Economic Ladder? Earnings Mobility in EU: 1994-2001

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Author Info
Sologon, Denisa Maria () (Maastricht University)
O'Donoghue, Cathal () (Teagasc Rural Economy Research Centre)

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Abstract

Do EU citizens have an increased opportunity to improve their position in the distribution of earnings over time? This question is answered by exploring short and long-term wage mobility for males across 14 EU countries between 1994 and 2001 using ECHP. Mobility is evaluated using rank measures which capture positional movements in the distribution of earnings. All countries recording an increase in cross-sectional inequality recorded also a decrease in short-term mobility. Among countries where inequality decreased, short-term mobility increased in Denmark, Spain, Ireland and UK, and decreased in Belgium, France and Ireland. Long-term mobility is higher than short-term mobility, but long-term persistency is still high in all countries. The lowest long-term mobility is found in Luxembourg followed by four clusters: first, Spain, France and Germany; second, Netherlands, and Portugal; third, UK, Italy and Austria; forth, Greece, Finland, Belgium and Ireland. The highest long-term mobility is recorded in Denmark.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4311.

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Length: 65 pages
Date of creation: Jul 2009
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Handle: RePEc:iza:izadps:dp4311

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

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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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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Dickens, Richard, 2000. "Caught in a Trap? Wage Mobility in Great Britain: 1975-1994," Economica, London School of Economics and Political Science, vol. 67(268), pages 477-97, November. [Downloadable!] (restricted)
  2. Gottschalk, Peter & Spolaore, Enricco, 2002. "On the Evaluation of Economic Mobility," Review of Economic Studies, Blackwell Publishing, vol. 69(1), pages 191-208, January.
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