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Earnings and labour market volatility in Britain

  • Cappellari, Lorenzo
  • Jenkins, Stephen P.

We provide new evidence about earnings and labour market volatility in Britain over the period 1992–2008, and for women as well as men. (Most research about volatility refers to earnings volatility for US men.) We show that earnings volatility declined slightly for both men and women over the period but the changes are not statistically significant. When we look at labour market volatility, i.e. including in the calculations individuals with zero earnings as well as employees with positive earnings, there is a marked and statistically significant decline for both women and men, with the fall greater for men. Using variance decompositions, we show that the fall in labour market volatility is largely accounted for by changes in employment attachment rates. Labour market volatility trends in Britain, and what contributes to them, differ from their US counterparts in several respects.

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File URL: https://www.iser.essex.ac.uk/research/publications/working-papers/iser/2013-10.pdf
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Paper provided by Institute for Social and Economic Research in its series ISER Working Paper Series with number 2013-10.

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Date of creation: 10 Jul 2013
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Publication status: published
Handle: RePEc:ese:iserwp:2013-10
Contact details of provider: Postal: Publications Office, Institute for Social and Economic Research, University of Essex, Wivenhoe Park, Colchester, Essex CO4 3SQ UK
Phone: 44-1206-872957
Fax: 44-1206-873151
Web page: https://www.iser.essex.ac.uk/
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