| By: |
Garnero, Andrea (OECD);
Hijzen, Alexander (OECD);
Martin, Sébastien (OECD) |
| Abstract: |
This paper provides comprehensive cross-country evidence on the relationship
between earnings inequality and intra-generational mobility by simulating
individual earnings and employment trajectories in the long-term using short
panel data for 24 OECD countries. On average across countries, about 25% of
earnings inequality in a given year evens out over the life cycle as a result
of mobility. Moreover, mobility is not systematically higher in countries with
more earnings inequality in general. However, a positive and statistically
significant relationship is found only in the bottom of the distribution. This
reflects the role of mobility between employment and unemployment and not that
of mobility up and down the earnings ladder. |
| Keywords: |
intra-generational mobility, life-time inequality, earnings-experience profiles, simulation |
| JEL: |
E24 J30 J62 O57 |
| Date: |
2016–02 |
| URL: |
http://d.repec.org/n?u=RePEc:iza:izadps:dp9753&r=ltv |