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The B.E. Journal of Economic Analysis & Policy

Editor-in-Chief: Ludwig, Sandra / Schmitz, Hendrik

Ed. by Barigozzi, Francesca / Brunner, Johann / Fleck, Robert / Jürges, Hendrik / Mastrobuoni, Giovanni / Mendola, Mariapia / Requate, Till / de Vries, Frans / Wenzel, Tobias


IMPACT FACTOR 2018: 0.520
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CiteScore 2018: 0.54

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Source Normalized Impact per Paper (SNIP) 2018: 0.394

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1935-1682
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Volume 10, Issue 1

Issues

Volume 6 (2006)

Volume 4 (2004)

Volume 2 (2002)

Volume 1 (2001)

Long-Run Earnings Inequality and Earnings Instability among Canadian Men Revisited, 1985-2005

Yuri Ostrovsky
Published Online: 2010-03-17 | DOI: https://doi.org/10.2202/1935-1682.2378

Abstract

I consider two flexible models of earnings dynamics suggested in the recent literature and alternative approaches to the treatment of left-censored observations to examine trends in the permanent and transitory variances of earnings of Canadian male workers from 1985 to 2005. I find that both permanent and transitory variances were higher in the 2000s than in the late 1980s or 1990s. In contrast to the late 1980s and the recession period of the early 1990s, both components of variance grew at a similar pace during the post-recession period, and the share of each component in the total variance remained fairly stable. The results are robust to the choice of a model. The study is based on a large sample from a uniquely rich longitudinal administrative dataset.

Keywords: income distribution; earnings inequality; earnings instability; permanent-transitory decomposition; GMM

About the article

Published Online: 2010-03-17


Citation Information: The B.E. Journal of Economic Analysis & Policy, Volume 10, Issue 1, ISSN (Online) 1935-1682, DOI: https://doi.org/10.2202/1935-1682.2378.

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