Dynamics in transitory and permanent variation of wages in Germany

Referierte Aufsätze Web of Science

Michal Myck, Richard Ochmann, Salmai Qari

In: Economics Letters 113 (2011), 2, 143-146

Abstract

We employ covariance structure models to decompose the cross-sectional variance of male wages in Germany into its permanent and transitory parts. We find that the steep growth of cross-sectional inequality during the early 2000s is predominantly driven by transitory factors.

Themen: Arbeit und Beschäftigung



Keywords: Variance decomposition; Wage inequality; Wage dynamics
DOI:
https://doi.org/10.1016/j.econlet.2011.06.014

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