IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v30y1998i1p1-17.html
   My bibliography  Save this article

An analysis of the dynamic behaviour of earnings distributions

Author

Listed:
  • Ruben Cohen

Abstract

An analysis of the dynamic behaviour of earnings distributions is conducted here in three ways. First, the method of dimensional analysis, in the context of Buckingham's Pi theorem, is employed to demonstrate that earnings distributions, which are almost always dynamic in character, should, under certain conditions and a special coordinate transformation, be self-similar and time-invariant. Application of the theorem to some empirical data, pertaining to Canadian income, fully confirms this finding. Second, an economics-based model, incorporating the concept of a shock-free economy in competitive equilibrium, is developed to provide an intuitive account of the conclusions reached above. Testing the model's predictions against data once again yields satisfactory agreement between the two. The model is finally extended to account for labour-force mobility across income brackets. The outcome of this, when compared with empirical data, could reflect the degree of homogeneity, and even discrimination, in a labour force.

Suggested Citation

  • Ruben Cohen, 1998. "An analysis of the dynamic behaviour of earnings distributions," Applied Economics, Taylor & Francis Journals, vol. 30(1), pages 1-17.
    • Handle: RePEc:taf:applec:v:30:y:1998:i:1:p:1-17
    DOI: 10.1080/000368498326092
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/000368498326092
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/000368498326092?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jesus Perez-Mayo, 2005. "Identifying deprivation profiles in Spain: a new approach," Applied Economics, Taylor & Francis Journals, vol. 37(8), pages 943-955.
    2. Lawrence Dacuycuy, 2007. "On wage density comparisons: bandwidth selectors and test outcomes," Applied Economics Letters, Taylor & Francis Journals, vol. 14(3), pages 203-208.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:30:y:1998:i:1:p:1-17. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.