Dinámica de los ingresos laborales y desigualdad en Uruguay 1997-2015

This paper analyses the earning dynamic for Uruguayan male workers since 1979 to 2015 using Social Security administrative data. I estimate the covariance structure of earnings using the GMM estimator and decompose the inequality into its permanent and transitory parts. I found evidence about the inequality permanent component increasing along the lifetime and that there is a moderate persistence in the transitory component. While permanent inequality is the most important component over the life cycle, there is a convergence effect during the labor career. In addition, the results indicate there was a change since 2005, links to a lot of changes in the institutions of labor market, with a lower relevance for permanent inequality. An increasing importance of transient inequality is found among individuals, which generates greater possibilities for mobility, although for all birth-cohorts analyzed permanent inequality remains predominant.