Workers, firms and life-cycle wage dynamics
"Studies of individual wage dynamics typically ignore firm heterogeneity, whereas decompositions of earnings into worker and firm effects abstract from life-cycle considerations. We study firm effects in individual wage dynamics using administrative data on the population of Italian employers a...
| Main Authors: | , |
|---|---|
| Institution: | ETUI-European Trade Union Institute |
| Format: | TEXT |
| Language: | English |
| Published: |
Bonn
2018
IZA |
| Subjects: | |
| Online Access: | https://www.labourline.org/KENTIKA-19399949124911171219-Workers,-firms-and-life-cycle-.htm |
| _version_ | 1771659893493727232 |
|---|---|
| author | Bingley, Paul Cappellari, Lorenzo |
| author_facet | Bingley, Paul Cappellari, Lorenzo |
| collection | Library items |
| description | "Studies of individual wage dynamics typically ignore firm heterogeneity, whereas decompositions of earnings into worker and firm effects abstract from life-cycle considerations. We study firm effects in individual wage dynamics using administrative data on the population of Italian employers and employees. We propose a novel identification strategy for firm-related wage components exploiting the informative content of the wage covariance structure of coworkers. Wage inequality increases three-fold over the working life; firm effects are predominant while young, but sorting of workers into firms becomes increasingly important, explaining the largest share of lifetime inequality. Static models that do not allow for life-cycle dynamics underestimate the importance of sorting and overstate match and firm effects." |
| format | TEXT |
| geographic | Italy |
| id | 19399949124911171219_c889e7f5e4f242a18f4808afa4ad91bc |
| institution | ETUI-European Trade Union Institute |
| is_hierarchy_id | 19399949124911171219_c889e7f5e4f242a18f4808afa4ad91bc |
| is_hierarchy_title | Workers, firms and life-cycle wage dynamics |
| language | English |
| physical | 44 p. Digital |
| publishDate | 2018 |
| publisher | Bonn IZA |
| spellingShingle | Bingley, Paul Cappellari, Lorenzo wages wage differential life cycle Workers, firms and life-cycle wage dynamics |
| thumbnail | https://www.labourline.org/Image_prev.jpg?Archive=133993595117 |
| title | Workers, firms and life-cycle wage dynamics |
| topic | wages wage differential life cycle |
| url | https://www.labourline.org/KENTIKA-19399949124911171219-Workers,-firms-and-life-cycle-.htm |