Earnings Dynamics and Its Intergenerational Transmission: Evidence from Norway

Halvorsen, Elin; Ozkan, Serdar; Salgado, Sergio

doi:10.2139/ssrn.3789289

Cited by 9 publications

(9 citation statements)

References 62 publications

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“…Skewness is clearly procyclical (i.e., the distribution is more negatively skewed during recessions), as observed in the U.S. (see Guvenen, Ozkan, and Song (2014)). We also find that wage mobility is pretty low in France, especially when compared to Scandinavian countries (see other articles in this issue, in particular, Friedrich, Laun, and Meghir (2022) for Sweden, Halvorsen, Ozkan, and Salgado (2022) for Norway, and Leth‐Petersen and Sæverud (2022) for Denmark). Earnings mobility is very stable over the sample period as in other European countries (see, e.g., Bell, Bloom, and Blundell (2022), Drechsel‐Grau, Peichl, Schmid, Schmieder, Walz, and Wolter (2022), and Hoffmann, Malacrino, and Pistaferri (2022)).…”

Section: Introductionsupporting

confidence: 60%

Inequality and earnings dynamics in France: National policies and local consequences

Kramarz

Nimier-David

Delemotte

2022

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This paper provides new stylized facts about labor earnings inequality and dynamics in France for the period 1991–2016. Using linked employer–employee data, we show that (i) labor inequality in France is low compared to other developed countries and has been decreasing until the financial crisis of 2009 and increasing since then, (ii) women experienced high earnings growth, in particular at the bottom of the distribution, in contrast to the stability observed for men. Both result from a decrease in labor costs at the minimum wage and an increase in the hourly minimum in the aftermath of the 35h workweek policy, (iii) top earnings (top 5 and 1%) grew moderately while very top earnings (top 0.1 and 0.01%) experienced a much higher growth, (iv) inequality between and within cohorts follow the same U‐shaped pattern as global inequality: it decreased before 2009 and then increased until 2016, (v) Individual earnings mobility is stable between 1991 and 2016, and very low at the top of the distribution, (vi) the distribution of earnings growth is negatively skewed, leptokurtic, and varies with age. Then, studying earnings dispersion both within and between territories, we document strong differences across cities as well as between urban and rural areas, even after controlling for observable characteristics. We also observe a continuous decrease in earnings inequality between territories. However, a larger inflation in rural territories mitigates this convergence. Finally, we document a strong reduction in inequality within rural and remote territories, again driven by changes at the bottom of the wage distribution.

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Section: Introductionsupporting

confidence: 60%

Inequality and earnings dynamics in France: National policies and local consequences

Kramarz

Nimier-David

Delemotte

2022

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“…32 This tilted U-shape is consistent with findings for Sweden, Denmark, Norway, France, and the US (Friedrich et al, 2021;Leth-Petersen and Saeverud, 2021;Halvorsen et al, 2021;Kramarz et al, 2021;McKinney et al, 2021).…”

Section: Heterogeneity In Earnings Dynamics By Age and Permanent Earn...supporting

confidence: 72%

Inequality and Income Dynamics in Germany

et al. 2022

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“…The pattern, where the difference between the 90th and 10th percentiles, p90–p10, is decreasing over the life cycle, is similar to Norway (Halvorsen, Ozkan, and Salgado (2022)) and Sweden (Friedrich, Laun, and Meghir (2022), and to some degree, France (Kramarz, Nimier‐David, and Delemotte (2022)), Brazil (Engbom, Gonzaga, Moser, and Olivieri (2022)), Argentina (Blanco, Diaz de Astarloa, Drenik, Moser, and Trupkin (2022)), and Germany (Drechsel‐Grau, Peichl, Schmid, Schmieder, Walz, and Wolter (2022)), but it appears not to be the typical pattern in Canada (Bowlus, Gouin‐Bonenfant, Liu, Lochner, and Park (2022)), the UK (Bell, Bloom, and Blundell (2022)), Italy (Hoffmann, Malacrino, and Pistaferri (2022)), Spain (Arellano, Bonhomme, De Vera, Hospido, and Wei (2022)), and Mexico (Puggioni, Calderón, Cebreros Zurita, Fernández Bujanda, Gonzalez, and Jaume (2022)).…”

Section: Trends In the Inequality And Dynamics Of Earningsmentioning

confidence: 85%

Inequality and dynamics of earnings and disposable income in Denmark 1987–2016

Leth‐Petersen

Sæverud

2022

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We document facts about earnings and disposable income inequality and growth in Denmark in the period 1987–2016. During this period, the distribution of log earnings growth exhibits skewness that varies with the business cycle and has strong excess kurtosis. Denmark has a progressive income tax system with a high level of taxes and a relatively generous and heavily subsidized unemployment insurance system. Consequently, the dispersion of log disposable income growth is much smaller than for earnings, and the distribution exhibits very limited skewness and much reduced excess kurtosis. These results emphasize the importance of distinguishing between earnings and disposable income when modeling income dynamics, and they suggest that the Danish welfare state plays an important role in reducing the impact of earnings fluctuations on disposable income.

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Earnings Dynamics and Its Intergenerational Transmission: Evidence from Norway

Cited by 9 publications

References 62 publications

Inequality and earnings dynamics in France: National policies and local consequences

Inequality and earnings dynamics in France: National policies and local consequences

Inequality and Income Dynamics in Germany

Inequality and dynamics of earnings and disposable income in Denmark 1987–2016

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