In this paper, we document whether and how much the equalizing force of earnings mobility has changed in France in the 1990's. For this purpose, we use a representative three-year panel, the French Labour Force Survey. We develop a model of earnings dynamics that combines a flexible...

In this paper, we construct a non-parametric estimator of the distributions of latent factors in linear independent multi-factor models under the assumption that factor loadings are known. Our approach allows estimation of the distributions of up to L(L+ 1)/2 factors given L measurements. The...

We propose a framework to identify and estimate earnings distributions and worker composition on matched panel data, allowing for two‐sided worker‐firm unobserved heterogeneity and complementarities in earnings. We introduce two models: a static model that allows for nonlinear interactions...

Abstract Job characteristics can affect worker turnover through their effect on utility and through their effect on outside job opportunities. We separately identify and estimate the roles of these two channels. Our method exploits information on job changes and relies on an augmented sample...

As economic inequality in Europe has continued to rise, it has become the subject of increasing academic attention. What are the drivers of inequality? How does it affect intergenerational economic and social mobility? At what point does inequality become a drag on economic growth or a threat to...

We use tax files from 2004 to 2010 to document the recent evolution of earnings inequality in Spain. We find that inequality went in parallel with the evolution of the unemployment rate during the period. This evolution is consistent with the evidence from Social Security records recently...

Many approaches to estimation of panel models are based on an average or integrated likelihood that assigns weights to different values of the individual effects. Fixed effects, random effects, and Bayesian approaches all fall into this category. We provide a characterization of the class of...