Earnings and labour market volatility in Britain, with a transatlantic comparison

Publication type

Journal Article


Publication date

October 15, 2014


We contribute new evidence about earnings and labour market volatility in Britain over the period 1992–2008, for women as well as men, and provide transatlantic comparisons. (Most research about volatility refers to earnings volatility for US men.) Earnings volatility declined slightly for both men and women over the period but the changes are not statistically significant. When we look at labour market volatility, i.e. also including individuals with zero earnings in the calculations, there is a statistically significant decline in volatility for both women and men, with the fall greater for men. Using variance decompositions, we demonstrate that the fall in labour market volatility is largely accounted for by changes in employment attachment rates. We show that volatility trends in Britain, and what contributes to them, differ from their US counterparts in several respects.

Published in

Labour Economics

Volume and page numbers

Volume: 30 , p.201 -211





Albert Sloman Library Periodicals *restricted to Univ. Essex registered users*

Appears in Special Section articles on "What determined the dynamics of labour economics research in the past 25 years? edited by Joop Hartog and and European Association of Labour Economists 25th Annual Conference, Turin, Italy, 19-21 September 2013 Edited by Michele Pellizzari

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