Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/36907
Authors: 
Doris, Aedín
O'Neill, Donal
Sweetman, Olive
Year of Publication: 
2010
Series/Report no.: 
Discussion paper series // Forschungsinstitut zur Zukunft der Arbeit 4952
Abstract: 
In this paper we study the performance of the GMM estimator in the context of the covariance structure of earnings. Using analytical and Monte Carlo techniques we examine the sensitivity of parameter identification to key features such as panel length, sample size, the degree of persistence of earnings shocks and the evolution of inequality over time. We show that the interaction of transitory persistence with the time pattern of inequality determines identification in these models and offer some practical recommendations that follow from our findings.
Subjects: 
GMM
permanent and transitory inequality
JEL: 
J31
D31
Document Type: 
Working Paper

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