OECD Journal: Economic Studies

Frequency
Annual
ISSN: 
1995-2856 (online)
ISSN: 
1995-2848 (print)
http://dx.doi.org/10.1787/19952856
Hide / Show Abstract

OECD Journal: Economic Studies publishes articles in the area of economic policy analysis, applied economics and statistical analysis, generally with an international or cross-country dimension. It draws significantly on economic papers produced by the OECD Economics Department, other parts of the OECD Secretariat and the Organisation’s intergovernmental committees.

Article
 

Demographic or labour market trends

What determines the distribution of household earnings in OECD countries? You do not have access to this content

English
 
Click to Access: 
    http://oecd.metastore.ingenta.com/content/1313011ec002.pdf
  • PDF
  • http://www.keepeek.com/Digital-Asset-Management/oecd/economics/demographic-or-labour-market-trends_eco_studies-2013-5k43jt5vcdvl
  • READ
Author(s):
Wen-Hao Chen, Michael Förster, Ana Llena-Nozal
05 Feb 2014
Pages:
29
Bibliographic information
No.:
5,
Volume:
2013,
Issue:
1
Pages:
179–207
http://dx.doi.org/10.1787/eco_studies-2013-5k43jt5vcdvl

Hide / Show Abstract

This article assesses various underlying driving factors for the evolution of household earnings inequality for 23 OECD countries from the mid-1980s to the mid-2000s. There are a number of factors at play. Some are related to labour market trends – increasing dispersion of individual wages and changes in men’s and women’s employment rates. Others relate to shifts in household structures and family formation – more single-headed households and increased earnings correlation among partners in couples. The contribution of each of these factors is estimated using a semi parametric decomposition technique. The results reveal that marital sorting and household structure changes contributed, albeit moderately, to increasing household earnings inequality, while rising women’s employment exerted a sizable equalising effect. However, changes in labour market factors, in particular increases in men’s earnings disparities, were identified as the main driver of household earnings inequality, contributing between one-third and one-half to the overall increase in most countries. Sensitivity analysis applying a reversedorder decomposition suggests that these results are robust.

 
Visit the OECD web site