Dynamics in transitory and permanent variation of wages in Germany

We employ covariance structure models to decompose the cross-sectional variance of male wages in Germany into its permanent and transitory parts. We find that the steep growth of cross-sectional inequality during the early 2000s is predominantly driven by transitory factors.

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Year of publication:	2011
Authors:	Myck, Michal ; Ochmann, Richard ; Qari, Salmai
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 113.2011, 2, p. 143-146
Publisher:	Elsevier
Subject:	Variance decomposition \| Wage inequality \| Wage dynamics

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Type of publication:	Article
Classification:	C23 - Models with Panel Data ; D31 - Personal Income, Wealth and Their Distributions ; J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010572178