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Education and wage inequality in Europe

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Author Info

  • 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.

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File URL: http://www.accessecon.com/Pubs/EB/2011/Volume31/EB-11-V31-I3-P235.pdf
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Bibliographic Info

Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 31 (2011)
Issue (Month): 3 ()
Pages: 2620-2628

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Handle: RePEc:ebl:ecbull:eb-11-00489

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Related research

Keywords: Returns to education; Wage inequality; Quantile regression; Europe.;

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  1. Budria, Santiago & Telhado-Pereira, Pedro, 2005. "Educational Qualifications and Wage Inequality: Evidence for Europe," MPRA Paper 91, University Library of Munich, Germany.
  2. 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.
  3. Adrian Wood, 1995. "How Trade Hurt Unskilled Workers," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 57-80, Summer.
  4. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
  5. DiNardo, John & Fortin, Nicole M & Lemieux, Thomas, 1996. "Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach," Econometrica, Econometric Society, vol. 64(5), pages 1001-44, September.
  6. Daron Acemoglu, 2000. "Technical Change, Inequality, and the Labor Market," NBER Working Papers 7800, National Bureau of Economic Research, Inc.
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