Many contributions suggest that earnings instability has increased during the 1980s and 1990s. This paper develops and … explaining earnings instability. To study the evolution over time of these different components we extract two estimation samples … contribute to the increase in earnings instability even if it is only their joint effect that generates what we observe in the …

separately job stayers and job changers. I find that earnings instability (the variance of the transitory component of earnings …-the-job search. The increasing variance of the transitory component of earnings is modeled as a mean-preserving spread of the …. As a result of increased on-the-job search, the variance of the transitory part of earnings increases among job changers …