Flexicurity, wage dynamics and inequality over the life-cycle

Lorenzo Cappellari

No ieil0064, DISCE - Quaderni dell'Istituto di Economia dell'Impresa e del Lavoro from Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE)

Abstract: We investigate the relationship between life-cycle wages and flexicurity in Denmark. We separate permanent from transitory wages and characterise flexicurity using membership of unemployment insurance funds. We find that flexicurity is associated with lower wage growth heterogeneity over the life-cycle and greater wage instability, changing the nature of wage inequality from permanent to transitory. While we are in general unable to formally test for moral hazard against adverse selection into unemployment insurance membership, robustness checks suggest that moral hazard is the relevant interpretation.

Keywords: Unemployment insurance; wage dynamics; wage inequality; wage instability. (search for similar items in EconPapers)
JEL-codes: J31 J65 (search for similar items in EconPapers)
Pages: 39
Date: 2011-10
New Economics Papers: this item is included in nep-ias, nep-lab and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.unicatt.it/Istituti/EconomiaImpresaLavoro/Quaderni/ieil0064.pdf First version, 2011 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Server closed connection without sending any data back (http://www.unicatt.it/Istituti/EconomiaImpresaLavoro/Quaderni/ieil0064.pdf [302 Redirect]--> https://www.unicatt.it/home-pagina-non-trovata [302 Found]--> http://www.unicatt.it/404.html)

Related works:
Working Paper: Flexicurity, wage dynamics and inequality over the life-cycle (2012)
Working Paper: Flexicurity, Wage Dynamics and Inequality over the Life-Cycle (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ctc:serie4:ieil0064

Access Statistics for this paper

More papers in DISCE - Quaderni dell'Istituto di Economia dell'Impresa e del Lavoro from Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE) Contact information at EDIRC.
Bibliographic data for series maintained by Lorenzo Cappellari ().