TY - JOUR
T1 - Modelling earnings dynamics and inequality: foreign workers and inequality trends in Luxembourg, 1988-2009.
AU - Sologon, Denisa
AU - Van Kerm, Philippe
PY - 2018/2/1
Y1 - 2018/2/1
N2 - The paper exploits large-scale administrative data to analyse trends in male earnings inequality in Luxembourg during 20 years of rapid economic growth, industrial redevelopment and massive inflow of foreign workers. A detailed error components model is estimated to identify persistent and transitory components of (the trends of) log-earnings variance and to disentangle the contributions to it of native, immigrant and cross-border workers. The model is flexible and allows for a high degree of individual, age, time and cohort heterogeneity. We observe a surprising stability in overall earnings inequality as a result of more complex underlying changes, with marked increases in persistent inequality (except among natives), a growing contribution of foreigners and a decrease in earnings instability (primarily for natives).
AB - The paper exploits large-scale administrative data to analyse trends in male earnings inequality in Luxembourg during 20 years of rapid economic growth, industrial redevelopment and massive inflow of foreign workers. A detailed error components model is estimated to identify persistent and transitory components of (the trends of) log-earnings variance and to disentangle the contributions to it of native, immigrant and cross-border workers. The model is flexible and allows for a high degree of individual, age, time and cohort heterogeneity. We observe a surprising stability in overall earnings inequality as a result of more complex underlying changes, with marked increases in persistent inequality (except among natives), a growing contribution of foreigners and a decrease in earnings instability (primarily for natives).
KW - Earnings dynamics
KW - Minimum distance estimation
KW - Persistent inequality
KW - Transitory inequality
KW - cross-border and immigrant workers
KW - dministrative data
UR - http://onlinelibrary.wiley.com/doi/10.1111/rssa.12303/full
U2 - 10.1111/rssa.12303
DO - 10.1111/rssa.12303
M3 - Article
SN - 0964-1998
VL - 181
SP - 409
EP - 440
JO - Journal of the Royal Statistical Society. Series A: Statistics in Society
JF - Journal of the Royal Statistical Society. Series A: Statistics in Society
IS - 2
ER -