The evolution of individual male earnings in Great Britain 1974-1994

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: In this paper I study the changing dynamic structure of male wages in Great Britain using the New Earnings Survey Panel form 1974-1994. Computing the covariance structure of individual wages by cohort I find evidence of a substantial permanent component of earnings that increases over the life cycle and a highly persistent, serially correlated transitory component. In addition, the estimated variances of both the permanent and transitory components have risen over this period, each explaining about half the rise in inequality. These results imply that the observed cross sectional rise in inequality is reflective of largely permanent differences between individuals that have grown over the last decade or so.

JEL-codes: J01 R14 (search for similar items in EconPapers)
Pages: 55 pages
Date: 1996-11
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://eprints.lse.ac.uk/20647/ Open access version. (application/pdf)

Related works:
Working Paper: The Evolution of Individual Male Earnings in Great Britain 1974-1994 (1996)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:20647

Access Statistics for this paper

More papers in LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library LSE Library Portugal Street London, WC2A 2HD, U.K.. Contact information at EDIRC.
Bibliographic data for series maintained by LSERO Manager ().