Wage Inequality and Wage Mobility in Europe

Abstract

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Wage Inequality and Wage Mobility in Turkey

“…Resuls show that within wage inequality is much larger than between wage inequality for all subgroubs showing importance of unobservable factors. This is a finding that is observed in many countries (Bachmann et al 2012). Further Table 9 shows that there is a clear increasing trend in between group inequality by education and a decreasing trend in the between group inequality by education.…”

“…In this section we provide a general overview of the labor market institutions which may be responsible for the high wage inequality and low wage mobility found in this paper for Turkey. Several authors such as Koeniger et al(2004) and Bachmann et al (2012) investigated the importance of labor market institutions such as minimum wage legislation, union density, employment protection regulation and unemployment insurance in order to explain the evolution of wage inequality in a number of EU countries. Their findings imply that labor market institutions can account for a large part of the change in wage inequality across countries.…”

“…There is a vast literature on the evolution of income mobility which has controversial findings on whether mobility is increasing or decreasing over time. For instance, using Bachmann et al (2012) find that mobility reduces wage inequality and the equalizing effect of mobility mainly occurs within groups using data from SILC for all EU countries as well for Norway and Iceland over the period 2004. Riener (2012 examines income inequality and equalizing effect of income mobility using (ECHP) data from 1995, 1998 and 2001.…”

Low-wage mobility in Central Europe

“…More precise operationalisation will be provided in the section devoted to the discussion of the results. Following the study of Bachmann et al (2016), we interpreted the relationship between explanatory variable(s) and the dependent variable in terms of predicted probabilities and marginal effects. Marginal effects, with their standard errors, are reported in the tables in the appendix.…”