The Cycle of Earnings Inequality: Evidence from Spanish Social Security Data

No 6669, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We use detailed information on labor earnings and employment from social security records to document the evolution of earnings inequality in Spain from 1988 to 2010. Male earnings inequality was strongly countercyclical: it increased around the 1993 recession, showed a substantial decrease during the 1997-2007 expansion, and then a sharp increase during the recent recession. This evolution was partly driven by the cyclicality of employment and earnings in the lower-middle part of the distribution. We emphasize the importance of the housing boom and subsequent housing bust, and show that demand shocks in the construction sector had large effects on aggregate labor market outcomes.

Keywords: business cycle; earnings inequality; social security data; unemployment (search for similar items in EconPapers)
JEL-codes: D31 J21 J31 (search for similar items in EconPapers)
Pages: 64 pages
Date: 2012-06
New Economics Papers: this item is included in nep-eur, nep-lab and nep-ltv
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

Published - published in: Economic Journal, 2017, 127 (603), 1244–1278

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Related works:
Journal Article: The Cycle of Earnings Inequality: Evidence from Spanish Social Security Data (2017)
Working Paper: The cycle of earnings inequality: evidence from Spanish social security data (2012)
Working Paper: The Cycle of Earnings Inequality: Evidence from Spanish Social Security Data (2012)
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