More Unequal, But More Mobile? Earnings Inequality and Mobility in OECD Countries

Andrea Garnero, Alexander Hijzen and Sébastien Martin ()
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Sébastien Martin: OECD

No 9753, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper provides comprehensive cross-country evidence on the relationship between earnings inequality and intra-generational mobility by simulating individual earnings and employment trajectories in the long-term using short panel data for 24 OECD countries. On average across countries, about 25% of earnings inequality in a given year evens out over the life cycle as a result of mobility. Moreover, mobility is not systematically higher in countries with more earnings inequality in general. However, a positive and statistically significant relationship is found only in the bottom of the distribution. This reflects the role of mobility between employment and unemployment and not that of mobility up and down the earnings ladder.

Keywords: earnings-experience profiles; life-time inequality; intra-generational mobility; simulation (search for similar items in EconPapers)
JEL-codes: E24 J30 J62 O57 (search for similar items in EconPapers)
Pages: 60 pages
Date: 2016-02
New Economics Papers: this item is included in nep-dem, nep-ltv and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Forthcoming - published in: Labour Economics, 2019, 56, 26-35

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Related works:
Journal Article: More unequal, but more mobile? Earnings inequality and mobility in OECD countries (2019)
Working Paper: More unequal, but more mobile?: Earnings inequality and mobility in OECD countries (2016)
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