TY - JOUR
T1 - Earnings dynamics and uncertainty in Italy: how do they differ between the private and public sectors?
AU - Cappellari, Lorenzo
PY - 2001
Y1 - 2001
N2 - This paper uses Italian panel data from the private and public sectors and analyses earnings dynamics and uncertainty by applying the minimum distance estimator. Results show that earnings careers markedly differ between public and private sectors. In particular, for private sector workers, the life cycle of earnings matters in the formation of earnings differentials, i.e., the data reveal the presence of heterogeneity of earnings growth rates. On the other hand, public sector data indicate that earnings growth is homogeneous over the life cycle and, as a consequence, initial earnings differences tend to persist over the career. Earnings uncertainty is found to be negligible in the public sector, suggesting that it provides more stable earnings careers.
AB - This paper uses Italian panel data from the private and public sectors and analyses earnings dynamics and uncertainty by applying the minimum distance estimator. Results show that earnings careers markedly differ between public and private sectors. In particular, for private sector workers, the life cycle of earnings matters in the formation of earnings differentials, i.e., the data reveal the presence of heterogeneity of earnings growth rates. On the other hand, public sector data indicate that earnings growth is homogeneous over the life cycle and, as a consequence, initial earnings differences tend to persist over the career. Earnings uncertainty is found to be negligible in the public sector, suggesting that it provides more stable earnings careers.
U2 - https://doi.org/10.1016/S0927-5371(02)00043-X
DO - https://doi.org/10.1016/S0927-5371(02)00043-X
M3 - Article
SN - 0927-5371
VL - 9
SP - 477
EP - 496
JO - Labour Economics
JF - Labour Economics
IS - 4
ER -