Myck, Michal; Ochmann, Richard; Qari, Salmai - In: Economics Letters 113 (2011) 2, pp. 143-146
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.