The Heterogeneous Cyclicality of Income and Wages Among the Distribution

24 Pages Posted: 21 Mar 2015

See all articles by María Cervini‐Plá

María Cervini‐Plá

University of Girona

Antonia López-Villavicencio

University of Angers - Centre d'économie de l'Université de Paris Nord (CEPN)

José I. Silva

University of Girona

Date Written: March 20, 2015

Abstract

We investigate the cyclicality of real wages and income using individual data for the UK over the 1991-2008 period. By paying special attention to the heterogeneity among different earnings and income groups, we document that individuals at the top of the distribution are more cyclical than lower ones. Moreover, the estimated cyclicality is considerably higher in recessions than in expansions for top-incomes. We also show that real wages and income are roughly a cyclical for low wage and income workers. Instead, their adjustment to the cycle takes place through transitions to and from unemployment.

Keywords: Real wage, cyclicality, heterogeneity, income distribution

JEL Classification: E24, E32, J31

Suggested Citation

Cervini‐Plá, María and López-Villavicencio, Antonia and Silva, José I., The Heterogeneous Cyclicality of Income and Wages Among the Distribution (March 20, 2015). Available at SSRN: https://ssrn.com/abstract=2581545 or http://dx.doi.org/10.2139/ssrn.2581545

María Cervini‐Plá

University of Girona

Girona, 17071
Spain

Antonia López-Villavicencio

University of Angers - Centre d'économie de l'Université de Paris Nord (CEPN) ( email )

UMR7115
Université Paris-Nord
Paris XIII
France

José I. Silva (Contact Author)

University of Girona ( email )

Carrer de la Universitat de Girona, 10
Departament d'Economia
Girona, Girona 17003
Spain

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