Common and country specific factors in the distribution of real wages

Eleni Chatzivgeri, Haroon Mumtaz, Daniela Tavasci, Luigi Ventimiglia

Research output: Contribution to journalArticle

Abstract

We use a dynamic factor model to consider if real wage growth in the US, UK and Germany at different percentiles of the distribution can be explained by factors that are common across countries or specific to each country. Our results suggest that common factors explain a large proportion of the movement in wages when considering the left tail of the distribution indicating that shocks that are common across countries are important for low wage households.
Original languageEnglish
Article number108582
JournalEconomics Letters
Volume184
Early online date29 Aug 2019
DOIs
Publication statusPublished - Nov 2019

Keywords

  • Dynamic factor model
  • Household wages

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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