Abstract
This paper uses Italian panel data from the private and public sectors and analyses earnings dynamics and uncertainty by applying the minimum distance estimator. Results show that earnings careers markedly differ between public and private sectors. In particular, for private sector workers, the life cycle of earnings matters in the formation of earnings differentials, i.e., the data reveal the presence of heterogeneity of earnings growth rates. On the other hand, public sector data indicate that earnings growth is homogeneous over the life cycle and, as a consequence, initial earnings differences tend to persist over the career. Earnings uncertainty is found to be negligible in the public sector, suggesting that it provides more stable earnings careers.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.