The covariance structure of earnings in Great Britain, 1991-1999

Research output: Contribution to journalArticleResearchpeer-review

29 Citations (Scopus)


I analyse the dynamic structure of earnings in Great Britain for the period 1991-99 by decomposing the earnings covariance structure into its permanent and transitory components. According to the British Household Panel Study data, earnings inequality of male full-time employees increases over the 1990s. However, earnings mobility may have also increased. That is, for this period earnings persistence falls. This evidence is at odds with previous literature on earnings dynamics both for Britain and other OECD countries. Moreover, human capital and job related characteristics account for nearly all persistent earnings differences and the transitory component is highly persistent.
Original languageEnglish
Pages (from-to)353-374
Publication statusPublished - 1 May 2003


Dive into the research topics of 'The covariance structure of earnings in Great Britain, 1991-1999'. Together they form a unique fingerprint.

Cite this