Introducing Unobserved Heterogeneity in Earnings Mobility

Thibault Brodaty

Post-Print from HAL

Abstract: This paper introduces and describes unobserved heterogeneity in earnings quintiles transition matrices in the US. Unobserved heterogeneity is found to play a crucial role in earnings mobility. Each individual is attracted, given his characteristics, towards a specific zone of the distribution. At the stationnary equilibrium, the earnings quintiles distribution is thus segmented. Interestingly, while the level of earnings mobility has remained quite stable since 1970, the width of these zones has decreased, such that this segmentation was more pronounced in the 80's and the 90's than in the 70's, especially in the middle of the quintiles distribution.

Keywords: earnings mobility; unobserved heterogeneity; segmentation; state dependence; dynamic multinomial logit (search for similar items in EconPapers)
Date: 2007-11-09
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00250130
References: Add references at CitEc
Citations:

Published in 2007

Downloads: (external link)
https://shs.hal.science/halshs-00250130/document (application/pdf)

Related works:
Working Paper: Introducing Unobserved Heterogeneity in Earnings Mobility (2007)
Working Paper: Introducing Unobserved Heterogeneity in Earnings Mobility (2007)
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:hal:journl:halshs-00250130

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().