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Wage mobility in Europe. A comparative analysis using restricted multinomial logit regression

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  • Dimitris Pavlopoulos
  • Ruud Muffels
  • Jeroen Vermunt

Abstract

In this paper, we investigate cross-country differences in wage mobility in Europe using the European Community Household Panel. The paper is particularly focused on examining the impact of economic conditions, welfare state regimes and employment regulation on wage mobility. We apply a log-linear approach that is very much similar to a restricted multinomial logit model and much more flexible than the standard probit approach. It appears that regime, economic conditions and employment regulation explain a substantial part of the cross-country variation. The findings also confirm the existence of an inverse U-shape pattern of wage mobility, showing a great deal of low and high-wage persistence in all countries.
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  • Dimitris Pavlopoulos & Ruud Muffels & Jeroen Vermunt, 2010. "Wage mobility in Europe. A comparative analysis using restricted multinomial logit regression," Quality & Quantity: International Journal of Methodology, Springer, vol. 44(1), pages 115-129, January.
    • Handle: RePEc:spr:qualqt:v:44:y:2010:i:1:p:115-129
    DOI: 10.1007/s11135-008-9185-8
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    2. Dimitris Pavlopoulos & Ruud Muffels & Jeroen Vermunt, 2010. "Wage mobility in Europe. A comparative analysis using restricted multinomial logit regression," Quality & Quantity: International Journal of Methodology, Springer, vol. 44(1), pages 115-129, January.
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    1. Dimitris Pavlopoulos & Ruud Muffels & Jeroen Vermunt, 2010. "Wage mobility in Europe. A comparative analysis using restricted multinomial logit regression," Quality & Quantity: International Journal of Methodology, Springer, vol. 44(1), pages 115-129, January.
    2. Doruk, Ömer Tuğsal & Pastore, Francesco & Yavuz, Hasan Bilgehan, 2024. "Intergenerational occupational mobility in Latin American economies: An empirical approach," Economic Systems, Elsevier, vol. 48(1).
    3. Gernandt, Johannes, 2009. "Decreasing wage mobility in Germany," ZEW Discussion Papers 09-044, ZEW - Leibniz Centre for European Economic Research.
    4. Bachmann, Ronald & Bauer, Thomas K. & Kröger, Hanna & Schaffner, Sandra & Schmidt, Christoph M., 2012. "Tarifsystem stabilisieren: Drucksache 17/8148. Stellungnahme zur Anhörung des Ausschusses für Arbeit und Soziales des Deutschen Bundestages am 6. Februar 2012," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 72592, March.
    5. Aristei, David & Perugini, Cristiano, 2015. "The drivers of income mobility in Europe," Economic Systems, Elsevier, vol. 39(2), pages 197-224.
    6. Magda, Iga & Bukowski, Maciej & Buchholz, Sonia & Lewandowski, Piotr & Chrostek, Paweł & Kamińska, Agnieszka & Lis, Maciej & Potoczna, Monika & Myck, Michał & Kundera, Michał & Oczkowska, Monika, 2013. "Employment in Poland 2011 - Poverty and jobs," MPRA Paper 50185, University Library of Munich, Germany.
    7. Magda, Iga, 2008. "Wage mobility in times of higher earnings disparities: is it easier to climd the ladder?," ISER Working Paper Series 2008-10, Institute for Social and Economic Research.
    8. Miri Endeweld, 2018. "On Job Mobility And Earnings Growth," Israel Economic Review, Bank of Israel, vol. 16(2), pages 37-62.
    9. Bárcena-Martín, Elena & Medina-Claros, Samuel & Pérez-Moreno, Salvador, 2020. "Gendered Effects of Employment Protection on Earnings Mobility," GLO Discussion Paper Series 547, Global Labor Organization (GLO).
    10. repec:boi:isrerv:v:16:y:2019:i:2:p:37-62 is not listed on IDEAS
    11. Bachmann, Ronald & Beimann, Boris & Bredtmann, Julia & David, Peggy & Ehlert, Christoph & Kassenböhmer, Sonja & Schaffner, Sandra & Siemers, Lars, 2011. "Studies on flexicurity Lot 1: Study on various aspects of labour market performance using micro data from the European Union statistics on income and living conditions (EU-SILC). Contract No. VC/2010/," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 72620, March.
    12. Ashley Pullman & Britta Gauly & Clemens M. Lechner, 2021. "Short-term earnings mobility in the Canadian and German context: the role of cognitive skills," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 55(1), pages 1-19, December.
    13. Bachmann, Ronald & Bauer, Thomas K. & Kröger, Hanna & Schaffner, Sandra & Schmidt, Christoph M., 2012. "Tarifvertragssystem stärken - Allgemeinverbindliche Tariflöhne und branchenspezifische Mindestlöhne erleichtern. Stellungnahme zur Anhörung des Ausschusses für Arbeit und Soziales des Deutschen Bundes," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 72615, March.
    14. Corrado Zoppi & Sabrina Lai, 2011. "Differentials in the Regional Operational Program expenditure for public services and infrastructure in the coastal cities of Sardinia (Italy) analyzed in the ruling context of the Regional Landscape ," ERSA conference papers ersa10p713, European Regional Science Association.

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    More about this item

    Keywords

    Wage mobility; Welfare states; Multinomial logit regression; Log-linear models;
    All these keywords.

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • C19 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Other
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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