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
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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