EconPapers    
Economics at your fingertips  
 

Earnings Mobility and Distribution: Comparing Statistical Models on Swedish Data

Mårten Palme ()

No 7, SSE/EFI Working Paper Series in Economics and Finance from Stockholm School of Economics

Abstract: There are at least two instrumental motives for studying earnings mobility. First, to extend the analysis of income distribution to more than one time period. Second, to predict future individual earnings. For both these motives, adequate models of earnings mobility are needed. This study compares the usefulness of different statistical models (human capital and stochastic models), previously used to estimate earnings mobility, in predicting future individual earnings and earnings distributions. Special attention is given to the effect of considering individual heterogeneity. A 20- year panel, collected from the Swedish Level of Living Survey, of 651 employed men is used. The models are estimated on 17 periods and predictions are made for 3. It is found that a dynamic human capital model gives the best predictions of individual earnings.

Keywords: Life cycle earnings; lifetime earnings distribution; random coefficient models (search for similar items in EconPapers)
JEL-codes: J30 J31 J24 (search for similar items in EconPapers)
Date: 1994-01
References: Add references at CitEc
Citations: Track citations by RSS feed

Published in Labour Economics, 1995, pages 213-247.

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Earnings mobility and distribution: Comparing statistical models on Swedish data (1995) Downloads
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:hhs:hastef:0007

Access Statistics for this paper

More papers in SSE/EFI Working Paper Series in Economics and Finance from Stockholm School of Economics The Economic Research Institute, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Helena Lundin ().

 
Page updated 2019-10-09
Handle: RePEc:hhs:hastef:0007