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Earnings volatility in Austria

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  • René Böheim
  • David Pichler

Abstract

This study analyzes earnings volatility in Austria from 1980 to 2018, providing a comprehensive view of individual income instability and its demographic and structural determinants. Using administrative data, we examine volatility trends by gender, age, earnings deciles, and employment interruptions. We find that earnings volatility has increased over time, with employment interruptions as a major driver, particularly among employees in low-skill sectors and the lower earnings deciles. Additionally, we observe significant gender differences, with women experiencing higher volatility, often linked to childbirth and family-related career interruptions. Through variance decomposition, we attribute the greater share of volatility to demographic changes, including the impact of migration, sectoral shifts, and the growing labor force participation of women.

Suggested Citation

  • René Böheim & David Pichler, 2025. "Earnings volatility in Austria," Economics working papers 2025-04, Department of Economics, Johannes Kepler University Linz, Austria.
    • Handle: RePEc:jku:econwp:2025-04
    Note: English
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    File URL: http://www.economics.jku.at/papers/2025/wp2504.pdf
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    More about this item

    Keywords

    earnings volatility; employment interruptions; labor market dynamics;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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