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Education and persistence of earnings shocks

Chiara Dal Bianco () and Francesco Maura

Economics Letters, 2020, vol. 196, issue C

Abstract: We estimate Arellano, Blundell and Bonhomme’s (2017) nonlinear earnings process on Italian data. We show that the persistence of earnings history is lower for low-educated households than for high-educated ones, with low-educated households taking longer to recover from bad shocks.

Keywords: Earnings dynamic; Nonlinear persistence; Panel data (search for similar items in EconPapers)
JEL-codes: C14 J3 (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1016/j.econlet.2020.109527

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