Wage mobility in Austria 1986–1996

We examine wage mobility of Austrians using data from administrative sources. For the evaluation of wage mobility we calculate measures based on transitions between quintiles in the wage distribution. A second group of indices measures wage mobility by the extent to which averaging wages over a longer period decreases cross-sectional inequality. We find that in the case of Austria the equalising effect of wage mobility for male workers is only two-thirds of that in other OECD countries. Mobility is high for young workers and for workers who changed their employer during the observation period. Our results are in line with other evidence showing rigid relative wage structures in Austria.