Inequality and earnings dynamics in France: National policies and local consequences

Kramarz, Françis; Nimier-David, Elio; Delemotte, Thomas

doi:10.3982/qe1876

Cited by 12 publications

(7 citation statements)

References 29 publications

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“…32 This tilted U-shape is consistent with findings for Sweden, Denmark, Norway, France, and the US (Friedrich et al, 2021;Leth-Petersen and Saeverud, 2021;Halvorsen et al, 2021;Kramarz et al, 2021;McKinney et al, 2021).…”

Section: Heterogeneity In Earnings Dynamics By Age and Permanent Earn...supporting

confidence: 69%

Inequality and Income Dynamics in Germany

Drechsel-Grau¹,

Peichl²,

Schmieder³

et al. 2022

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We provide a comprehensive analysis of income inequality and income dynamics for Germany over the last two decades. Combining personal income tax and social security data allows us -for the first time -to offer a complete picture of the distribution of annual earnings in Germany. We find that cross-sectional inequality rose until 2009 for men and women. After the Great Recession inequality continued to rise at a slower rate for men and fell slightly for women due to compression at the lower tail. We further document substantial gender differences in average earnings and inequality over the life-cycle. While for men earnings rise and inequality falls as they grow older, many women reduce working hours when starting a family such that average earnings fall and inequality increases. Men's earnings changes are on average smaller than women's but are substantially more affected by the business cycle. During the Great Recession, men's earnings losses become magnified and gains are attenuated. Apart from recession years, earnings changes are significantly right-skewed reflecting the good overall state of the German labor market and increasing labor supply. In the second part of the paper, we study the distribution of total income including incomes of self-employed, business owners, and landlords. We find that total inequality increased significantly more than earnings inequality. Regarding income dynamics, entrepreneurs' income changes are more dispersed, less skewed, less leptokurtic and less dependent on average past income than workers' income changes. Finally, we find that top income earners have become less likely to fall out of the top 1 and 0.1 percent.

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Section: Heterogeneity In Earnings Dynamics By Age and Permanent Earn...supporting

confidence: 69%

Inequality and Income Dynamics in Germany

Drechsel-Grau¹,

Peichl²,

Schmieder³

et al. 2022

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show abstract

“…This tilted U‐shape is consistent with findings for Sweden, Denmark, Norway, France, and the US (Friedrich, Laun, and Meghir (2021), Leth‐Petersen and Sæverud (2021), Halvorsen, Ozkan, and Salgado (2021), Kramarz, Nimier‐David, and Delemotte (2021), McKinney, Abowd, and Janicki (2021)).…”

supporting

confidence: 88%

Inequality and income dynamics in Germany

Drechsel-Grau

Peichl

Schmid

et al. 2022

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We provide a comprehensive analysis of income inequality and income dynamics for Germany over the last two decades. Combining personal income tax and social security data allows us—for the first time—to offer a complete picture of the distribution of annual earnings in Germany. We find that cross‐sectional inequality rose until 2009 for men and women. After the Great Recession, inequality continued to rise at a slower rate for men and fell slightly for women due to compression at the lower tail. We further document substantial gender differences in average earnings and inequality over the life cycle. While for men earnings rise and inequality falls as they grow older, many women reduce working hours when starting a family such that average earnings fall and inequality increases. Men's earnings changes are on average smaller than women's but are substantially more affected by the business cycle. During the Great Recession, men's earnings losses become magnified and gains are attenuated. Apart from recession years, earnings changes are significantly right‐skewed reflecting the good overall state of the German labor market and increasing labor supply. In the second part of the paper, we study the distribution of total income including incomes of self‐employed, business owners, and landlords. We find that total inequality increased significantly more than earnings inequality. Regarding income dynamics, entrepreneurs' income changes are more dispersed, less skewed, less leptokurtic, and less dependent on average past income than workers' income changes. Finally, we find that top income earners have become less likely to fall out of the top 1 and 0.1%.

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“…The pattern, where the difference between the 90th and 10th percentiles, p90–p10, is decreasing over the life cycle, is similar to Norway (Halvorsen, Ozkan, and Salgado (2022)) and Sweden (Friedrich, Laun, and Meghir (2022), and to some degree, France (Kramarz, Nimier‐David, and Delemotte (2022)), Brazil (Engbom, Gonzaga, Moser, and Olivieri (2022)), Argentina (Blanco, Diaz de Astarloa, Drenik, Moser, and Trupkin (2022)), and Germany (Drechsel‐Grau, Peichl, Schmid, Schmieder, Walz, and Wolter (2022)), but it appears not to be the typical pattern in Canada (Bowlus, Gouin‐Bonenfant, Liu, Lochner, and Park (2022)), the UK (Bell, Bloom, and Blundell (2022)), Italy (Hoffmann, Malacrino, and Pistaferri (2022)), Spain (Arellano, Bonhomme, De Vera, Hospido, and Wei (2022)), and Mexico (Puggioni, Calderón, Cebreros Zurita, Fernández Bujanda, Gonzalez, and Jaume (2022)).…”

Section: Trends In the Inequality And Dynamics Of Earningsmentioning

confidence: 91%

Inequality and dynamics of earnings and disposable income in Denmark 1987–2016

Leth‐Petersen

Sæverud

2022

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We document facts about earnings and disposable income inequality and growth in Denmark in the period 1987–2016. During this period, the distribution of log earnings growth exhibits skewness that varies with the business cycle and has strong excess kurtosis. Denmark has a progressive income tax system with a high level of taxes and a relatively generous and heavily subsidized unemployment insurance system. Consequently, the dispersion of log disposable income growth is much smaller than for earnings, and the distribution exhibits very limited skewness and much reduced excess kurtosis. These results emphasize the importance of distinguishing between earnings and disposable income when modeling income dynamics, and they suggest that the Danish welfare state plays an important role in reducing the impact of earnings fluctuations on disposable income.

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Inequality and earnings dynamics in France: National policies and local consequences

Cited by 12 publications

References 29 publications

Inequality and Income Dynamics in Germany

Inequality and Income Dynamics in Germany

Inequality and income dynamics in Germany

Inequality and dynamics of earnings and disposable income in Denmark 1987–2016

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