Coverart for item
The Resource Employment Time and the Cyclicality of Earnings Growth

Employment Time and the Cyclicality of Earnings Growth

Label
Employment Time and the Cyclicality of Earnings Growth
Title
Employment Time and the Cyclicality of Earnings Growth
Creator
Contributor
Author
Subject
Genre
Language
eng
Summary
We study how the distribution of earnings growth evolves over the business cycle in Italy. We distinguish between two sources of annual earnings growth: changes in employment time (number of weeks of employment within a year) and changes in weekly earnings. Changes in employment time generate the tails of the earnings growth distribution, and account for the increased dispersion and negative skewness in the distribution of earnings growth in recessions. In contrast, the cross-sectional distribution of weekly earnings growth is symmetric and stable over the cycle. Thus, models that rely on cyclical idiosyncratic risk, should separately account for the employment margin in their earnings process to avoid erroneous conclusions. We propose such a process, based on the combination of simple employment and wage processes with few parameters, and show that it captures the procyclical skewness in changes in earnings growth and other important features of its distribution
Member of
Cataloging source
EBLCP
http://bibfra.me/vocab/lite/collectionName
IMF eLibrary
http://library.link/vocab/creatorName
Hoffmann, Eran B
Index
no index present
LC call number
HD4909
LC item number
.H644 2018 ONLINE
Literary form
non fiction
Nature of contents
dictionaries
http://library.link/vocab/relatedWorkOrContributorName
Malacrino, Davide
Series statement
IMF Working Paper,
Series volume
WP/18/115
http://library.link/vocab/subjectName
  • Wages
  • Wages
  • Economic Cycles
  • Italy
Label
Employment Time and the Cyclicality of Earnings Growth
Instantiates
Publication
Note
Table A.3 Third Central Moment Decomposition of Earnings Growth, Italy 1986-2012
Carrier category
online resource
Carrier category code
  • cr
Carrier MARC source
rdacarrier
Content category
text
Content type code
  • txt
Content type MARC source
rdacontent
Contents
  • Cover; TABLE OF CONTENTS; I. INTRODUCTION; II. RELATED LITERATURE; III. DECOMPOSING EARNINGS GROWTH; A. The Components of Earnings; B. Decomposing Moments of the Cross-Sectional Distribution; IV. DATA; A. Italy: INPS Data; Earnings growth in Italy and in the US; B. Current Population Survey; V. EVIDENCE ON THE ROLE OF EMPLOYMENT TIME; A. Evidence from the Cross-Section; B. Time Series Evidence; C. Earnings Growth at Longer Horizon; D. Job Stayers and Job Switchers; E. Effects if Income Tax and Unemployment Benefits; F. Earnings Growth over the Life Cycle; G. Summary: Evidence from Italy
  • VI. IMPLICATIONS: A PROPOSED EARNINGS PROCESSA. The Employment Process; B. Wage Process; C.A Numerical Example; D. Suggestive Evidence from US Labor Market Flows; VII. CONCLUSION; FIGURES; Figure 1. Decomposition of Annual Earnings Growth Distribution; Figure 2. Log-Density of Annual Earnings growth in Italy and US, 1996; Figure 3. Log-Densities of Earnings Growth in Italy 2002, Group A, B, C; Figure 4. Annual Earnings Growth in Expansion and Recession, Italy 2002 and 2009; Figure 5. Moment Decomposition of Annual Earnings Growth, Italy 1986-2012
  • Figure 6. Moment Decomposition of Five-Year Earnings GrowthFigure 7. Job Stayers and Job Switchers, Italy 1986-2012; Figure 8. Moments of Annual Earnings Growth, Pre and Post Taxes, Italy 1997-2012; Figure 9. Effect of the Unemployment Benefits in the 2009 Cross-Section; Figure 10. Numerical Example -- Decomposition of Earnings Growth; Figure 11. Simulation -- Recession and Expansion; Figure 12. Labor Market Transition Rates, United States 1976-2015; Figure 13. Third Moment of Earnings Growth & Changes in Employment Time (Model); TABLES; Table 1. Summary Statistics -- INPS Panel Data
  • Table 2. Conditional Probabilities of Large Changes in EarningsTable 3. Variance Decomposition of Earnings Growth, Italy 1986-2012; Table 4. Statistical Test of Source of Cyclicality; APPENDIX; APPENDIX A. DATA APPENDIX; A. Italy: Additional Summary Statistics; B. Italy: Top-Coding; C. Italy: The Italian Income Tax; D. Italy: The Employment Time Statistics; E. United States: Moments from GOS; F. United States: CPS Data; APPENDIX B. Statistical Model; A. Setup; B. The Conditional Annual Employment; C. Computing the Forward Probability Mass Function; D. Limitation of the Markov Assumption
  • E. Time Series EvidenceAPPENDIX-FIGURES; Figure A.1. Sensitivity to Top-Coding; Figure A.2. Labor Market States Shares, US 1976-2015; Figure A.3 Moment Decomposition of Annual Earnings Growth, US 1976-2013; Figure A.4 Annual Earnings, Employment Time and Weekly Earnings Growth Age Profile; Figure A.5 Decomposition of Annual Earnings Growth Distribution -- Age Profiles Removed; Figure A.6 Moment Decomposition of Annual Earnings, Employment Time, and Weekly Earnings Growth -- Age Profiles Removed; APPENDIX-TABLES; Table A.1 Summary Statistics for Selected Years; Table A.2 Summary Statistics
Control code
1039693237
Dimensions
unknown
Extent
1 online resource (68 pages)
Form of item
online
Isbn
9781484356685
Media category
computer
Media MARC source
rdamedia
Media type code
  • c
Other control number
10.5089/9781484353561.001
Specific material designation
remote
System control number
(OCoLC)1039693237
Label
Employment Time and the Cyclicality of Earnings Growth
Publication
Note
Table A.3 Third Central Moment Decomposition of Earnings Growth, Italy 1986-2012
Carrier category
online resource
Carrier category code
  • cr
Carrier MARC source
rdacarrier
Content category
text
Content type code
  • txt
Content type MARC source
rdacontent
Contents
  • Cover; TABLE OF CONTENTS; I. INTRODUCTION; II. RELATED LITERATURE; III. DECOMPOSING EARNINGS GROWTH; A. The Components of Earnings; B. Decomposing Moments of the Cross-Sectional Distribution; IV. DATA; A. Italy: INPS Data; Earnings growth in Italy and in the US; B. Current Population Survey; V. EVIDENCE ON THE ROLE OF EMPLOYMENT TIME; A. Evidence from the Cross-Section; B. Time Series Evidence; C. Earnings Growth at Longer Horizon; D. Job Stayers and Job Switchers; E. Effects if Income Tax and Unemployment Benefits; F. Earnings Growth over the Life Cycle; G. Summary: Evidence from Italy
  • VI. IMPLICATIONS: A PROPOSED EARNINGS PROCESSA. The Employment Process; B. Wage Process; C.A Numerical Example; D. Suggestive Evidence from US Labor Market Flows; VII. CONCLUSION; FIGURES; Figure 1. Decomposition of Annual Earnings Growth Distribution; Figure 2. Log-Density of Annual Earnings growth in Italy and US, 1996; Figure 3. Log-Densities of Earnings Growth in Italy 2002, Group A, B, C; Figure 4. Annual Earnings Growth in Expansion and Recession, Italy 2002 and 2009; Figure 5. Moment Decomposition of Annual Earnings Growth, Italy 1986-2012
  • Figure 6. Moment Decomposition of Five-Year Earnings GrowthFigure 7. Job Stayers and Job Switchers, Italy 1986-2012; Figure 8. Moments of Annual Earnings Growth, Pre and Post Taxes, Italy 1997-2012; Figure 9. Effect of the Unemployment Benefits in the 2009 Cross-Section; Figure 10. Numerical Example -- Decomposition of Earnings Growth; Figure 11. Simulation -- Recession and Expansion; Figure 12. Labor Market Transition Rates, United States 1976-2015; Figure 13. Third Moment of Earnings Growth & Changes in Employment Time (Model); TABLES; Table 1. Summary Statistics -- INPS Panel Data
  • Table 2. Conditional Probabilities of Large Changes in EarningsTable 3. Variance Decomposition of Earnings Growth, Italy 1986-2012; Table 4. Statistical Test of Source of Cyclicality; APPENDIX; APPENDIX A. DATA APPENDIX; A. Italy: Additional Summary Statistics; B. Italy: Top-Coding; C. Italy: The Italian Income Tax; D. Italy: The Employment Time Statistics; E. United States: Moments from GOS; F. United States: CPS Data; APPENDIX B. Statistical Model; A. Setup; B. The Conditional Annual Employment; C. Computing the Forward Probability Mass Function; D. Limitation of the Markov Assumption
  • E. Time Series EvidenceAPPENDIX-FIGURES; Figure A.1. Sensitivity to Top-Coding; Figure A.2. Labor Market States Shares, US 1976-2015; Figure A.3 Moment Decomposition of Annual Earnings Growth, US 1976-2013; Figure A.4 Annual Earnings, Employment Time and Weekly Earnings Growth Age Profile; Figure A.5 Decomposition of Annual Earnings Growth Distribution -- Age Profiles Removed; Figure A.6 Moment Decomposition of Annual Earnings, Employment Time, and Weekly Earnings Growth -- Age Profiles Removed; APPENDIX-TABLES; Table A.1 Summary Statistics for Selected Years; Table A.2 Summary Statistics
Control code
1039693237
Dimensions
unknown
Extent
1 online resource (68 pages)
Form of item
online
Isbn
9781484356685
Media category
computer
Media MARC source
rdamedia
Media type code
  • c
Other control number
10.5089/9781484353561.001
Specific material designation
remote
System control number
(OCoLC)1039693237

Library Locations

    • Pardee Legal Research CenterBorrow it
      5998 Alcalá Park, San Diego, CA, 92110-2492, US
      32.771471 -117.187496
Processing Feedback ...