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

See all articles by Dimitris Pavlopoulos

Dimitris Pavlopoulos

VU University Amsterdam - Faculty of Social Sciences

Ruud Muffels

Tilburg University

J. Vermunt

Tilburg University - Department of Methodology and Statistics

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

Pavlopoulos, Dimitris and Muffels, Ruud and Vermunt, J., Wage Mobility in Europe - A Comparative Analysis Using Restricted Multinomial Logit Regression (February 10, 2009). Quality and Quantity, Forthcoming , OSA-Working Paper No. WP2005-24, Available at SSRN: https://ssrn.com/abstract=1340309

Dimitris Pavlopoulos (Contact Author)

VU University Amsterdam - Faculty of Social Sciences ( email )

De Boelelaan 1081
Amsterdam, 1081 HV
Netherlands

Ruud Muffels

Tilburg University ( email )

Postbus 90153
Tilburg, DC Noord-Brabant 5000 LE
Netherlands
0031134662795 (Phone)
0031134663003 (Fax)

HOME PAGE: http://www.uvt.nl/

J. Vermunt

Tilburg University - Department of Methodology and Statistics ( email )

PO Box 90153
Tilburg, 5000 LE
Netherlands

HOME PAGE: http://spitswww.uvt.nl/~vermunt/

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