Modelling earnings dynamics and inequality: foreign workers and inequality trends in Luxembourg, 1988--2009

peer reviewed ; 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 o... Mehr ...

Verfasser: Sologon, Denisa M.
VAN KERM, Philippe
Dokumenttyp: journal article
Erscheinungsdatum: 2018
Verlag/Hrsg.: Blackwell Publishing
Schlagwörter: Business & economic sciences / Quantitative methods in economics & management / Social economics / Economic systems & public economics / Social & behavioral sciences / psychology / Sociology & social sciences / Sciences économiques & de gestion / Méthodes quantitatives en économie & gestion / Economie sociale / Systèmes économiques & économie publique / Sciences sociales & comportementales / psychologie / Sociologie & sciences sociales
Sprache: Englisch
Permalink: https://search.fid-benelux.de/Record/base-29108341
Datenquelle: BASE; Originalkatalog
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Link(s) : https://orbilu.uni.lu/handle/10993/35054

peer reviewed ; 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).