Doris, Aedín; Donal O’Neill; Sweetman, Olive - In: Journal of Economic Inequality 11 (2013) 3, pp. 343-372
In recent years there has been a rapid growth in the number of studies that have used the GMM estimator to decompose the earnings covariance structure into its permanent and transitory parts. Using a heterogeneous growth model of earnings, we consider the performance of the estimator in this...