Flexicurity, wage dynamics and inequality over the life-cycle

Arbeitspapier

We investigate the relationship between life-cycle wages and flexicurity in Denmark. We separate permanent from transitory wages and characterise flexicurity using membership of unemployment insurance funds. We find that flexicurity is associated with lower wage growth heterogeneity over the life-cycle and greater wage instability, changing the nature of wage inequality from permanent to transitory. While we are in general unable to formally test for moral hazard against adverse selection into unemployment insurance membership, robustness checks suggest that moral hazard is the relevant interpretation.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 3561

Classification and Topics

• Classification: Wirtschaft ; Wage Level and Structure; Wage Differentials ; Unemployment Insurance; Severance Pay; Plant Closings
• Subject: unemployment insurance ; wage dynamics ; wage inequality ; wage instability ; Flexicurity ; Lohnstruktur ; Erwerbsverlauf ; Arbeitslosenversicherung ; Moral Hazard ; Dänemark

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bingley, Paul ; Cappellari, Lorenzo ; Westergård-Nielsen, Niels
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/49525
• Last update: 10.03.2025, 11:41 AM CET