Understanding Wage Inequality in Australia

Arpita Chatterjee, Aarti Singh and Tahlee Stone

No 2015-06, Working Papers from University of Sydney, School of Economics

Abstract: In this paper we document rise in wage inequality in Australia over the last decade. A key driver of this inequality is unobservable or residual inequality. We decompose residual wage inequality into permanent and transitory components. The estimates of the permanent shock from the first difference approach allow us to reconcile life-cycle wage inequality.

Keywords: Wage inequality; life-cycle; permanent and transitory; wage shocks (search for similar items in EconPapers)
Date: 2015-03
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Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Understanding Wage Inequality in Australia (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:syd:wpaper:2015-06

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