We estimate Arellano, Blundell and Bonhomme’s (2017) nonlinear earnings process on Italian data. We show that the persistence of earnings history is lower for low-educated households than for high-educated ones, with low-educated households taking longer to recover from bad shocks.
Education and persistence of earnings shocks
Dal Bianco Chiara
;Maura Francesco
2020
Abstract
We estimate Arellano, Blundell and Bonhomme’s (2017) nonlinear earnings process on Italian data. We show that the persistence of earnings history is lower for low-educated households than for high-educated ones, with low-educated households taking longer to recover from bad shocks.
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