[en] 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).
Disciplines :
Quantitative methods in economics & management Social economics Economic systems & public economics Sociology & social sciences
Author, co-author :
Sologon, Denisa M.; Luxembourg Institute of Socio-Economic Research - LISER
VAN KERM, Philippe ; University of Luxembourg > Faculty of Language and Literature, Humanities, Arts and Education (FLSHASE) > Integrative Research Unit: Social and Individual Development (INSIDE) ; Luxembourg Institute of Socio-Economic Research - LISER
External co-authors :
no
Language :
English
Title :
Modelling earnings dynamics and inequality: foreign workers and inequality trends in Luxembourg, 1988--2009
Publication date :
2018
Journal title :
Journal of the Royal Statistical Society. Series A, Statistics in Society