Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/35577
Authors: 
Sologon, Denisa Maria
O'Donoghue, Cathal
Year of Publication: 
2009
Series/Report no.: 
IZA discussion papers 4151
Abstract: 
This paper uses ECHP and OECD data for 14 EU countries to explore the role of labour market factors in explaining cross-national differences in the dynamic structure of earnings: in permanent inequality, transitory inequality and earnings mobility. Based on ECHP, minimum distance estimator is used to decompose earnings inequality into the permanent and transitory components and compute earnings mobility. The predicted components together with the institutional OECD data are used in a non-linear least squares setting to estimate the relationship between permanent inequality, transitory inequality and earnings mobility, and labour market policy and institutional factors. The results revealed a highly complex framework, where institutions interact significantly not only with each other and with the overall institutional setting, but also with the macroeconomic shocks in shaping the pattern of the three labour market outcomes.
Subjects: 
Panel data
wage distribution
inequality
mobility
labour market institutions
labour market policies
JEL: 
C23
D31
J31
J60
J50
J08
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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