Inequality for wage earners and self-employed: evidence from panel data

Pedro Albarran () and Maite Martinez-Granado ()
Authors registered in the RePEc Author Service: Raquel Carrasco ()

UC3M Working papers. Economics from Universidad Carlos III de Madrid. Departamento de Economía

Abstract: In this paper we study the evolution of income inequality for employees and self-employed workers. We highlight the importance of separately analyzing these different sources of income to gain a broader understanding of inequality. Using Spanish panel data on income and consumption from the ECPF for the period 1987-96, we decompose income shocks into a permanent and a transitory component. We find that there are noticeable differences in the evolution of income inequality, as well as in the relative importance of the permanent and transitory components across these groups. Our results point that the evolution of inequality can be basically explained by movements in the transitory component of income for the self-employed, while for the employees it is mainly driven by the permanent component, specially at the end of the period. Given these disparities, it seems that these two sources of income should be studied separately and that different policies are suitable for each group.

Keywords: Permanent; income; inequality; Transitory; income; inequality; Consumption; Self-employment; Panel; data (search for similar items in EconPapers)
Date: 2007-03
New Economics Papers: this item is included in nep-ent and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
https://e-archivo.uc3m.es/rest/api/core/bitstreams ... a9a963e35e46/content (application/pdf)

Related works:
Journal Article: Inequality for Wage Earners and Self‐Employed: Evidence from Panel Data* (2009)
Working Paper: Inequality for Wage Earners and Self-Employed: Evidence from Panel Data (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:cte:werepe:we072414

Access Statistics for this paper

More papers in UC3M Working papers. Economics from Universidad Carlos III de Madrid. Departamento de Economía
Bibliographic data for series maintained by Ana Poveda ().