Publication: Econometric analysis of income mobility and wage growth
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2014-09
Defense date
2014-10-20
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Abstract
My dissertation consists in three empirical studies on income mobility and wage growth.
In the first chapter I compare short run income mobility between the North and South of Italy.
Using the panel of the Survey on Household Income and Wealth for the period 2004-2008, I
show that individuals from the South face a worse income dynamic than those from the North
even when accounting for age and education. I use a nonparametric one-sided test for comparing
conditional transition probabilities with a continuous covariate. The test is based on covariate
matching techniques, does not assume any functional form for the dependence of the transition
probability on the covariate, allows for different sample design and has a pivotal distribution.
In the second chapter I use Italian administrative data to study the effect of adverse labor market
entry conditions on wage mobility of young males. I compare wage transition matrices between
individuals who entered the labor market in the higher unemployment period 1986-1988 and
those who entered in the lower unemployment period 1990-1992. I use a nonparametric testing
procedure. I find that individuals who enter during the high unemployment period face a worse
long run income mobility and in particular have signifficantly lower probabilities of reaching the
top class of the wage distribution. I argue that Italy has a static labor market with a high cost
of changing job. This reduces the opportunity of individuals to improve their working status,
leading to a negative persistent effect of adverse entry conditions.
In the third chapter I investigate the returns to internal migration for Italian young males. Using
Italian administrative data I find a signifficant positive effect on wage growth in the first eleven
years of career when individuals migrate towards North in the first five years of career. On the
other hand I find a signifficant negative effect on the wage of the first year following migration
when the destination is South. I show that it is essential to consider the destination and the
timing when studying returns to migration.
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Econometría, Distribución de la renta, Salario, Emigración e inmigración