Wage Mobility in Europe. A Comparative Analysis Using restricted Multinomial Logit Regression

Pavlopoulos, Dimitris and Muffels, Ruud and Vermunt, Jeroen-K. (2005): Wage Mobility in Europe. A Comparative Analysis Using restricted Multinomial Logit Regression. Published in: OSA-Working paper WP2005-24

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: wages; wage mobility; wage dynamics; multinomial logit regression; loglinear models; welfare states
• Subjects: J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs; C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C19 - Other; J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure ; Wage Differentials

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