On the Measurement of Wage Mobility and its Decomposition
This paper proposes a new index of relative wage mobility and uses Mincerian earnings function to derive a breakdown of this mobility into components measuring respectively the impact of human capital, differences in rates of return on human capital and unobservable characteristics. This wage mobility index is also decomposed into wage growth, structural mobility (change in wage inequality) and exchange mobility (re-ranking). An empirical illustration is given, based on the 1983 and 1995 Israeli Censuses.
Volume (Year): (2010)
Issue (Month): 99-100 ()
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