Wage Mobility Patterns in Europe
Wage mobility is in the heart of economic research and political debate on the futureof the European labour markets. This study deals with substantial and methodological issues concerning wage mobility. It fits in the tradition of labour economists thatare particularly interested in measuring the returns to human capital investmentsand the relationship between productivity and wages. More concisely, this thesis investigates the individual and institutional determinants of wage mobility. The effectof human capital as well as other personal and job characteristics on wage dynamicsis studied using longitudinal data for several European countries. By examiningthe results across countries featured by different labour markets institutions, we areable to test to what extent wage dynamics depend on the institutional context. Thisstudy shows that wage mobility is higher in countries that combine labour marketflexibility with employment and income security. It further underlines the significance of human capital in the determination of wage dynamics. However, mobilitylevels are conditional to the pay levels; low-paid and high-paid workers face differentlevels of wage mobility. This thesis also shows that there is a need to correct formeasurement error when studying wage mobility as this error strongly overestimateswage changes. Wage mobility of the low-paid in the strongly regulated labour market of Germany is higher than in the unregulated labour market of the UK and themoderately-flexible labour market of the Netherlands.