Wage Mobility in Europe - A Comparative Analysis Using Restricted Multinomial Logit Regression
Quality and Quantity, Forthcoming
OSA-Working Paper No. WP2005-24
57 Pages Posted: 10 Feb 2009
Date Written: February 10, 2009
Abstract
In this paper, we investigate cross-country differences in wage mobility in Europe using the European Community Household Panel. The paper is particularly focused on examining the impact of economic conditions, welfare state regimes and employment regulation on wage mobility. We apply a log-linear approach that is very much similar to a restricted multinomial logit model and much more flexible than the standard probit approach. It appears that regime, economic conditions and employment regulation explain a substantial part of the cross-country variation. The findings also confirm the existence of an inverse U-shape pattern of wage mobility, showing a great deal of low and high-wage persistence in all countries.
Keywords: wages, wage mobility, wage dynamics, multinomial logit regression, loglinear
JEL Classification: J31, C19
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Employed 40 Hours or Not-Employed 39: Lessons from the 1982 Mandatory Reduction of the Workweek
By Bruno Crepon and Francis Kramarz
-
By Richard V. Burkhauser, Douglas Holtz-eakin, ...
-
Bargained Wages, Wage Drift and the Design of the Wage Setting System
By Ana Rute Cardoso and Pedro Portugal
-
Bargained Wages, Wage Drift and the Design of the Wage-Setting System
By Ana Rute Cardoso and Pedro Portugal
-
Wage Mobility: Do Institutions Make a Difference? A Replication Study Comparing Portugal and the UK
-
Wage Mobility: Do Institutions Make a Difference? A Replication Study Comparing Portugal and the UK
-
Unity is Strength: An Experimental Study of Decentralized and Collective Bargaining
By Siegfried Berninghaus, Werner Güth, ...
-
The 35-Hour Workweek in France: Straightjacket or Welfare Improvement?