An International Comparison of Equalization Mobility and Lifetime Earnings Inequality: How Continental Europe Resembles North America

Audra Bowlus and Jean-Marc Robin
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Audra Bowlus: UWO - University of Western Ontario

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Abstract: We compare earnings inequality and mobility across the U.S., Canada, France, Germany and the U.K. during the late 1990s. A flexible model of earnings dynamics that isolates positional mobility within a stable earnings distribution is estimated. Earnings trajectories are then simulated, and lifetime annuity value distributions are constructed. Earnings mobility and employment risk are found to be positively correlated with base-year inequality. Taken together they produce more equalization in countries with high cross-section inequality such that the countries in our sample have more similar lifetime inequality levels than crosssectionmeasures suggest.

Date: 2010-09-21
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Working Paper: An International Comparison of Equalization Mobility and Lifetime Earnings Inequality: How Continental Europe Resembles North America (2010)
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