The structure of income mobility: empirical evidence from five UE countries

Cañón, Luis Ayala; Sastre, Mercedes

doi:10.1007/s00181-007-0172-z

Cited by 30 publications

(40 citation statements)

References 22 publications

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“…The data base used in all of these studies is the European Community Household Panel (ECHP), the German part of this data set is based, once again, on the SOEP. Ayala and Sastre (2008) (2004) did. Once again, they establish decreasing wage mobility during the observation period in Germany.…”

Section: Germanymentioning

confidence: 99%

Decreasing Wage Mobility in Germany

Gernandt

2009

SSRN Journal

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Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW.Download this ZEW Discussion Paper from our ftp server:ftp://ftp.zew.de/pub/zew-docs/dp/dp09044.pdf Non-technical summaryCross-section inequality increased in the last decade in Germany. Wage mobility can at least partly offset the increase in cross-section inequality and thus leads to a better understanding of inequality and poverty in a society. If wages are immobile, rising cross-section inequality is associated with a rising inequality of lifetime earnings. On the other hand, the extreme case of total mobility would resemble a lottery re-starting at the beginning of every time period and repositioning the individual at random in the wage distribution. The study at hand analyses the development of the wage mobility in Germany over the last 25 years.The data base of this empirical study is the German Socio-economic Panel (SOEP) for the time period 1984 to 2007, focusing on West Germans. The SOEP is a representative panel data set, which surveys about 11,000 households with 20,000 persons. Wage mobility in terms of the paper at hand is measured by the degree to which ranks are reversed over a 4-year time period where each rank represents one of 100 percentiles of the overall hourly wage distribution. The goal is to look at the individual turnover of persons within the wage distribution at the micro level to identify properties affecting wage mobility.The main findings show that wage mobility has decreased over time, while inequality has increased. Mobility is highest in the middle section of the distribution and highest for persons aged 30-39 years. Individual upgrades in the wage distribution are more likely to occur for university graduates, younger workers, employees in larger firms and for persons working in the public sector, as well as for white-collar workers and less likely for persons who faced an unemployment period in the time of observation. Wages are more volatile in the low-wage sector and for individuals moving downwards in the wage distribution. Das Wichtigste in KürzeSeit Mitte der 1990er Jahre ist die Lohnungleichheit in Deutschland im Querschnitt gestiegen.

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Section: Germanymentioning

confidence: 99%

Decreasing Wage Mobility in Germany

Gernandt

2009

SSRN Journal

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“…In the light of our findings, it would be interesting to analyse Portugal, who experienced income growth without equalization of long-run incomes, as this would constitute a stark contrast to Jenkins and Van Kerm's findings for the US, that could potentially be explained by differences in labour market institutions. Ayala and Sastre (2008) used data for the UK, France, Germany, Italy and Spain using the ECHP and do not find a strong link between mobility and income growth. We reassess this finding using more countries included in the ECHP, and see that the growth component is positively correlated with long-run equalization, but that the correlation between the transfer component Inequality and mobility of household incomes of Europe 287 and equalization is even larger.…”

Section: Discussionmentioning

confidence: 99%

Inequality and mobility of household incomes in Europe: evidence from the ECHP

Riener

2011

Applied Economics

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In this paper I want to shed light on two aspects of income mobility: relative total income mobility using the estimator by Fields and Ok [1999] and equalization of long-run incomes measured by the index of Fields [2004]. The cross country comparison shows a negative relationship between total relative mobility and long-run income equalization, this results is contrary to the intuition given by Shorrocks [1978a] who stated, that higher relative mobility will cause higher equalization of incomes when the accounting period is extended.

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“…Attention has also been paid to physical and human capital endowments, labour market conditions and positions, and initial income levels (e.g., Woolard and Klasen, 2005). More recently, institutional aspects started receiving explicit consideration too, especially with respect to labour market institutional settings (e.g., Ayala and Sastre, 2008;Sologon and O'Donoghue, 2011). Empirical evidence for Europe is not extensive, and until the mid-2000s it almost exclusively referred to the Western EU members, due to their early inclusion in the main household and individual level longitudinal surveys (first, the European Community Household Panel Survey -ECHP -and later the European Survey on Income and Living Conditions -EU-SILC).…”

Section: Introductionmentioning

confidence: 99%