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Occupational Choice and Earnings Mobility in the Work Life – Empirical Evidence from Europe and the United States

In: Inequality after the 20th Century: Papers from the Sixth ECINEQ Meeting

Author

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  • Veronika V. Eberharter

Abstract

Based on representative longitudinal data (CNEF 1980–2013) the paper analyzes gender differences of the level and the determinants of earnings dynamics in the work life of different cohorts of employees in Germany, Great Britain, and the United States. Notwithstanding country differences concerning the existing welfare state regime constituting the institutional settings of the labor market, the educational system, and family role models, the empirical results show decreasing earnings mobility in the work history. The earnings level, educational attainment, family size, the occupational choice, the career stage, the birth cohort, and the macroeconomic fluctuations significantly influence earnings mobility. In the United States, earnings mobility is significantly lower and gender differences are less pronounced than in Germany and Great Britain. The gender gap of earnings mobility is less expressed for younger cohorts of German employees. The increase of the gender gap of earnings dynamics in the course of the work career indicates continuing heterogeneity of labor market behavior and outcome of women and men which contribute to persistent economic and social stratification.

Suggested Citation

  • Veronika V. Eberharter, 2016. "Occupational Choice and Earnings Mobility in the Work Life – Empirical Evidence from Europe and the United States," Research on Economic Inequality, in: Inequality after the 20th Century: Papers from the Sixth ECINEQ Meeting, volume 24, pages 331-359, Emerald Group Publishing Limited.
  • Handle: RePEc:eme:reinzz:s1049-258520160000024014
    DOI: 10.1108/S1049-258520160000024014
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    More about this item

    Keywords

    Personal income distribution; earnings mobility; human capital; occupational choice; wage level and structure; economics of gender; D31; J24; J31; J16;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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