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Common and country specific factors in the distribution of real wages

Author

Listed:
  • Eleni Chatzivgeri

    (Heriot-Watt University)

  • Haroon Mumtaz

    (Queen Mary University of London)

  • Daniela Tavasci

    (Queen Mary University of London)

  • Luigi Ventimiglia

    (Queen Mary University of London)

Abstract
We use a dynamic factor model to consider if real wage growth in the US, UK and Germany at different percentiles of the distribution can be explained by factors that are common across countries or specific to each country. Our results suggest that common factors explain a large proportion of the movement in wages when considering the left tail of the distribution indicating that shocks that are common across countries are important for low wage households.

Suggested Citation

  • Eleni Chatzivgeri & Haroon Mumtaz & Daniela Tavasci & Luigi Ventimiglia, 2018. "Common and country specific factors in the distribution of real wages," Working Papers 863, Queen Mary University of London, School of Economics and Finance.
    • Handle: RePEc:qmw:qmwecw:863
    as

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    File URL: https://www.qmul.ac.uk/sef/media/econ/research/workingpapers/2018/wp863.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Household wages; dynamic factor model;

    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • E1 - Macroeconomics and Monetary Economics - - General Aggregative Models
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook

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