Template-Type: ReDIF-Paper 1.0
Author-Name: Lorenzo Cappellari
Author-X-Name-First: Lorenzo
Author-X-Name-Last: Cappellari
Author-Email: lorenzo.cappellari@unicatt.it
Author-Workplace-Name: DISCE, Università Cattolica
Title: Flexicurity, wage dynamics and inequality over the life-cycle
Abstract: 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.
Length: 39
Creation-Date: 2011-10
File-URL: http://www.unicatt.it/Istituti/EconomiaImpresaLavoro/Quaderni/ieil0064.pdf
File-Format: Application/pdf
File-Function: First version, 2011
Number: ieil0064
Classification-JEL: J31, J65
Keywords: Unemployment insurance, wage dynamics, wage inequality, wage instability.
Handle: RePEc:ctc:serie4:ieil0064