Anatomy of Earnings Mobility in Britain: Evidence from the BHPS, 1991-1995

Using the first five waves of the British Household Panel Survey (1991-5) I analyse male earnings mobility within and between population subgroups defined by age, education and employment status. I find that mobility occurs mainly within those groups. There is evidence of greater mobility amongst the young, part-time workers and the self-employed. However, mobility is lower for more highly educated individuals. Job mobility does not only lead to improving the relative earnings position of individuals but also to downward transitions. Observed earnings movement are not solely due to transitory changes in earnings but there is also ‘permanent’ earnings differences. This paper is part of my PhD thesis at the Institute for Social and Economic Research, University of Essex. I would like to thank Stephen Jenkins for his many and valuable comments and discussions. My thanks also to Frank Cowell and John Ermisch. The usual disclaimer applies. Correspondence to: Universitat Autònoma de Barcelona, Dept. Economia Aplicada, Edifici B, 08193 Bellaterra. Spain. E-mail: [email protected]