Wage Inequality and Wage Mobility in Europe

Bachmann, Ronald; Bechara, Peggy; Schaffner, Sandra

doi:10.2139/ssrn.2200444

Cited by 10 publications

(15 citation statements)

References 20 publications

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“…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.…”

Section: Wage Inequalitysupporting

confidence: 71%

“…For instance, Buchinsky and Hunt (1999) explore wage mobility and earning distributions for the US using 1979US using -1991 data from the National Longitudinal Survey of Youth and show that mobility reduces wage inequality by 12%-26% when a four-year time horizon is considered, with similar results for annual earnings. Using European Community Household Panel 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 2004-2010. Riener (2012 examines income inequality and equalizing effect of income mobility using (ECHP) data from 1995, 1998 and 2001.…”

Section: Literature Reviewmentioning

confidence: 99%

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Wage Inequality and Wage Mobility in Turkey

2018

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This paper investigates wage inequality and wage mobility in Turkey using the Surveys on Income and Living Conditions (SILC). This is the first paper that explores wage mobility for Turkey. It differs from the existing literature by providing analyses of wage inequality and wage mobility over various socioeconomic groups such as gender, age, education and sector of economic activity. We first present an overview of the evolution of wages and wage inequality over the period 2005-2011. Next, we compute several measures of wage mobility and explore the link between wage inequality and wage mobility. Further, we compute the transition matrices which show movements of individuals across the wage distribution from one period to another and investigate the determinants of transition probabilities using a multinomial logit model. The results show that overall the real wages increased over the study period and wage inequality exhibits a slight increase.. Wage inequality is one of the highest among the European Union (EU) countries. The wage mobility in Turkey is lower than what is observed in the European Union countries although it increases as time horizon expands. Wage mobility has an equalizing impact on the wage distribution, however; this impact is not substantial enough to overcome the high and persistent wage inequality in Turkey.

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Section: Wage Inequalitysupporting

confidence: 71%

Section: Literature Reviewmentioning

confidence: 99%

Wage Inequality and Wage Mobility in Turkey

2018

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“…In order to investigate which workers show the highest wage mobility, we follow Bachmann et al (2016) and run a multinomial regression model with the probability of upward, zero, and downward wage mobility as dependent variables. The results in Table 3 show that women compared to men are more likely to experience a downward transition rather than an upward transition.…”

Section: Consequences Of Occupational Mobility For Structural Change mentioning

confidence: 99%

Occupational Mobility in Europe: Extent, Determinants and Consequences

2019

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We examine occupational mobility and its link to wage mobility across a large number of EU countries using worker-level micro data. In doing so, we document the extent, the individual-level determinants and the consequences of occupational mobility in terms of wage outcomes and structural change across the EU. In addition, we identify potential explanations for the observed crosscountry variation. Our results show that on average, 3% of European workers change their occupation per year, and that the extent of occupational mobility differs strongly by country. Individual characteristics play an important role for person-specific occupational mobility, but have little explanatory power for differences between countries. Occupational mobility is strongly associated with earnings mobility, and occupation movers are more likely than job movers to experience a downward rather than an upward earnings transition; by contrast, changing occupation voluntarily is more often followed by an upward wage transition. As opposed to composition effects, labour-market institutions, especially employment protection legislation, seem to play an important role for explaining crosscountry differences in occupational mobility.

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“…Other studies have enriched the analysis by applying econometric models with the aim of dissecting the drivers of mobility. Examples in this direction are Pavlopoulos et al (2010), who apply a restricted multinomial logit to the ECHP, and Bachmann et al (2016), who assess income mobility in Europe over the period 2004-2011 with a multinomial logit, despite not making specific reference to possible changes in mobility due to the crisis. This line of research has further evolved to account for state dependence in the income distribution.…”

Section: Literature Backgroundmentioning

confidence: 99%

“…In this paper, we are interested in the dynamics of income distribution, that is in whether and by how much household income moves upwards or downwards. We start from the recent work of Aristei and Perugini (2015), Jäntti and Jenkins (2015), Bachmann et al (2016) and Carroll and Chen (2016) and look at short-term intra-generational income mobility (mobility, for short). We offer an innovative contribution to the literature by testing whether income mobility has changed between the pre-and post-crisis period, as work analysing this aspect is scarce (with the exception of Cantó and Ruiz (2015) for the US and Spain and Kennedy et al (2015) for Ireland, among others).…”

Section: Introductionmentioning

confidence: 99%

Short-Term Household Income Mobility Before and After the Great Recession: A Four-Country Study

Casabianca

Giarda

2019

SSRN Journal

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This paper analyses short-term intra-generational income mobility in France, Italy, Spain and the UK by exploiting the longitudinal component of EU-SILC for the periods 2005-2008 and 2012-2015. We investigate whether and to what extent the ability of households to move along the income distribution changed after the 2008 crisis and whether heterogeneities among countries exist. For this purpose, we employ mobility indexes and transition matrices as well as estimation of a 2SLS regression and of a dynamic ordered probit with random effects. Overall, indexes and transition matrices point to a decrease of mobility in the aftermath of the crisis. The econometric analyses suggest both the existence of a convergence process of incomes and state dependence of current and lagged income in both periods. We also observe sluggish income convergence and lower upward mobility in the second period. Among the microeconomic drivers, education and employment status are positive determinants of mobility. Finally, our results confirm crosscountry heterogeneity.

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Wage Inequality and Wage Mobility in Europe

Cited by 10 publications

References 20 publications

Wage Inequality and Wage Mobility in Turkey

Wage Inequality and Wage Mobility in Turkey

Occupational Mobility in Europe: Extent, Determinants and Consequences

Short-Term Household Income Mobility Before and After the Great Recession: A Four-Country Study

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