Modelling earnings dynamics and inequality: foreign workers and inequality trends in Luxembourg, 1988–2009

Denisa Sologon and Philippe Van Kerm

Journal of the Royal Statistical Society Series A, 2018, vol. 181, issue 2, 409-440

Abstract: The paper exploits large‐scale administrative data to analyse trends in male earnings inequality in Luxembourg during 20 years of rapid economic growth, industrial redevelopment and massive inflow of foreign workers. A detailed error components model is estimated to identify persistent and transitory components of (the trends of) log‐earnings variance and to disentangle the contributions to it of native, immigrant and cross‐border workers. The model is flexible and allows for a high degree of individual, age, time and cohort heterogeneity. We observe a surprising stability in overall earnings inequality as a result of more complex underlying changes, with marked increases in persistent inequality (except among natives), a growing contribution of foreigners and a decrease in earnings instability (primarily for natives).

Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://doi.org/10.1111/rssa.12303

Related works:
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:bla:jorssa:v:181:y:2018:i:2:p:409-440

Ordering information: This journal article can be ordered from
http://ordering.onli ... 1111/(ISSN)1467-985X

Access Statistics for this article

Journal of the Royal Statistical Society Series A is currently edited by A. Chevalier and L. Sharples

More articles in Journal of the Royal Statistical Society Series A from Royal Statistical Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().