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More unequal, but more mobile? Earnings inequality and mobility in OECD countries

par Garnero, Andrea ;Hijzen, Alexander;Martin, Sébastien
Référence Labour economics, 56, page (26-35)
Publication Publié, 2018-08-29

Article révisé par les pairs

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Résumé :

This paper provides comprehensive cross-country evidence on the relationship between earnings inequality and intra-generational mobility by simulating individual earnings and employment trajectories using short panels for 24 OECD countries. On average across countries, only 20% of earnings inequality in a given year evens out over the life cycle as a result of mobility. This suggests that the bulk of earnings inequality at a given time is permanent. Moreover, mobility and inequality are positively correlated across countries, suggesting that international differences in life-time inequality tend to be less pronounced than inequality differences in a given year. The positive correlation is largely driven by employment mobility – movements between employment and unemployment – and most pronounced in the bottom of the distribution.