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Education and wage inequality in Europe

Author

Listed:
  • Marco Biagetti

    (Ministry of Economic Development, Department of Economic and Social Cohesion)

  • Sergio Scicchitano

    ("La Sapienza" University and Italian Ministry of Economic Development)

Abstract

In this paper we apply a quantile regression (QR) approach to the EU-SILC data set, in order to explore the connection between education and wage inequality in eight European countries. Our results corroborate the positive relation between wage increase and education and it holds true across the whole distribution. This effect is generally stronger at the highest quantiles of the distribution than at the lowest, implying that schooling increases wage dispersion. This evidence is found to be rather robust like the applied tests of linear hypothesis show.

Suggested Citation

  • Marco Biagetti & Sergio Scicchitano, 2011. "Education and wage inequality in Europe," Economics Bulletin, AccessEcon, vol. 31(3), pages 2620-2628.
    • Handle: RePEc:ebl:ecbull:eb-11-00489
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    File URL: http://www.accessecon.com/Pubs/EB/2011/Volume31/EB-11-V31-I3-P235.pdf
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    References listed on IDEAS

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    5. Adrian Wood, 1997. "How Trade Hurt Unskilled Workers," Palgrave Macmillan Books, in: Jitendralal Borkakoti & Chris Milner (ed.), International Trade and Labour Markets, chapter 7, pages 140-168, Palgrave Macmillan.
    6. Santiago Budría & Pedro Telhado-Pereira, 2011. "Educational Qualifications And Wage Inequality: Evidence For Europe," Revista de Economia Aplicada, Universidad de Zaragoza, Departamento de Estructura Economica y Economia Publica, vol. 19(2), pages 5-34, Autumn.
    7. Martins, Pedro S. & Pereira, Pedro T., 2004. "Does education reduce wage inequality? Quantile regression evidence from 16 countries," Labour Economics, Elsevier, vol. 11(3), pages 355-371, June.
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    Cited by:

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    2. Kiran Fahd & Sitalakshmi Venkatraman, 2019. "Racial Inclusion in Education: An Australian Context," Economies, MDPI, vol. 7(2), pages 1-12, April.

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    More about this item

    Keywords

    Returns to education; Wage inequality; Quantile regression; Europe.;
    All these keywords.

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General

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