Wage Inequality and Wage Mobility in Europe

17 Pages Posted: 22 Feb 2016

See all articles by Ronald Bachmann

Ronald Bachmann

Rhine-Westphalia Institute for Economic Research (RWI-Essen)

Peggy Bechara

RWI Essen

Sandra Schaffner

RWI - Leibniz Institute for Economic Research

Multiple version iconThere are 2 versions of this paper

Date Written: March 2016

Abstract

Using data from the European Union Statistics on Income and Living Conditions, this paper investigates wage inequality and wage mobility in Europe. Decomposing inequality into within‐ and between‐group inequality, we analyze to what extent wage inequality and mobility can be explained by observable characteristics. Furthermore, we investigate which individual and household characteristics determine transitions within the wage distribution. We find that overall, mobility reduces wage inequality. While a large part of wage inequality is due to unobservable characteristics, the equalizing effect of mobility mainly occurs within groups. Furthermore, both personal and household characteristics play an important role for wage transitions. Finally, our findings reveal large cross‐country differences across Europe.

Keywords: cross‐country analysis, EU‐SILC, wage inequality, wage mobility, wage transitions

JEL Classification: J6, J31, P52

Suggested Citation

Bachmann, Ronald and Bechara, Peggy and Schaffner, Sandra, Wage Inequality and Wage Mobility in Europe (March 2016). Review of Income and Wealth, Vol. 62, Issue 1, pp. 181-197, 2016, Available at SSRN: https://ssrn.com/abstract=2735214 or http://dx.doi.org/10.1111/roiw.12152

Ronald Bachmann (Contact Author)

Rhine-Westphalia Institute for Economic Research (RWI-Essen) ( email )

Hohenzollernstr. 1-3
Essen, 45128
Germany

Peggy Bechara

RWI Essen ( email )

Hohenzollernstr. 1-3
Essen, 45128
Germany

Sandra Schaffner

RWI - Leibniz Institute for Economic Research ( email )

Hohenzollernstr. 1-3
Essen, 45128
Germany

HOME PAGE: http://www.rwi-essen.de/schaffner

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
2
Abstract Views
221
PlumX Metrics