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Modelling earnings dynamics and inequality: foreign workers and inequality trends in Luxembourg, 1988--2009
February 2018
Abstract: 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).
| Type: | Journal article |
| Theme(s): | Income dynamics and mobility Wages and employment Migration and integration |
| Keywords: | cross-border workers, earnings dynamics, immigrant workers, persistent inequality, transitory inequality |
| 10.1111/rssa.12303 | |
| RePEc:bla:jorssa:v:181:y:2018:i:2:p:409-440 |
Reference
Sologon, D.M. & Van Kerm, P. (2018), 'Modelling earnings dynamics and inequality: foreign workers and inequality trends in Luxembourg, 1988--2009', Journal of the Royal Statistical Society (Series A: Statistics in Society), 181(2), 409-440.
@ARTICLE{pvk-502,
Author = {Sologon, Denisa M. and Van Kerm, Philippe},
Title = {Modelling earnings dynamics and inequality: foreign workers and inequality trends in {L}uxembourg, 1988--2009},
Journal = {Journal of the Royal Statistical Society (Series A: Statistics in Society)},
Volume = {181},
Number = {2},
Pages = {409-440},
Month = feb,
Year = {2018}
}Download links
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Sologon, D.M. & Van Kerm, P. (2014), 'Earnings dynamics, foreign workers and the stability of inequality trends in Luxembourg 1988--2009', LISER Working Paper 2014-03, Luxembourg Institute of Socio-Economic Research, Esch/Alzette, Luxembourg.
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