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Earnings Dynamics and Inequality in EU, 1994-2001

Denisa Sologon () and Cathal O'Donoghue ()

No 184, SOEPpapers on Multidisciplinary Panel Data Research from DIW Berlin, The German Socio-Economic Panel (SOEP)

Abstract: This paper uses ECHP for 14 EU countries to explore the dynamic structure of individual earnings and the extent to which changes in cross-sectional earnings inequality reflect transitory or permanent components of individual lifecycle earnings variation. Increases in inequality reflect increases in permanent differentials in four countries and increases in both components in two. Decreases in inequality reflect decreases in transitory differentials in four countries, in permanent differentials in two and in both components in rest. In general, increases in inequality are accompanied by decreases in mobility, whereas only in three countries the increase in mobility is determined by the decrease in inequality.

Keywords: Panel data; wage distribution; inequality; mobility (search for similar items in EconPapers)
JEL-codes: C23 D31 J31 J60 (search for similar items in EconPapers)
Pages: 58 p.
Date: 2009
New Economics Papers: this item is included in nep-lab and nep-ltv
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Citations: View citations in EconPapers (3) Track citations by RSS feed

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http://www.diw.de/documents/publikationen/73/diw_01.c.98171.de/diw_sp0184.pdf (application/pdf)

Related works:
Working Paper: Earnings dynamics and inequality in the EU, 1994-2001 (2010) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:diw:diwsop:diw_sp184

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