Doris, Aedin and O'Neill, Donal and Sweetman, Olive
Aggregate Earnings Inequality in Europe: Permanent Differences or Transitory Fluctuations?
This paper examines the relationship between aggregate inequality and its underlying components for a number of European countries. We use a well established GMM approach to separate the permanent component from the transitory component of earnings inequality. Our results show that three quarters of the observed cross-country differences in aggregate inequality in Europe is accounted for by differences in permanent inequality, reflecting differences in individual characteristics that persist throughout the life-cycle.
||Permanent Inequality; Transitory Inequality; Generalized Method of Moments; Covariance Structure of Earnings;
||Social Sciences > Economics, Finance & Accounting
Ms Sandra Doherty
||12 Jun 2012 15:00
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