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Changes in the Austrian structure of wages, 1996–2002: evidence from linked employer-employee data

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  • Wolfgang Pointner

    ()

  • Alfred Stiglbauer

    ()

Abstract

Analyzing data from the Structure of Earnings Surveys we find that wage dispersion in Austria increased marginally between 1996 and 2002. There was an increase in the returns to education which accrued only to male workers. The positive effects of tenure and especially of experience on wages decreased over time. We adopt the Machado-Mata (2005) counterfactual decomposition technique which allows to attribute changes in each wage decile to changes in worker and workplace characteristics and into changes in returns to these characteristics. Behind the small net increase in inequality we document a number of interesting gross effects that influence the wage distribution. We find that both composition effects due to gender, education and age and market-driven effects such as changes in returns and changing workplace characteristics contributed to a higher dispersion of wages. JEL Classification: J22, J31

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File URL: http://hdl.handle.net/10.1007/s10663-010-9125-4
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Bibliographic Info

Article provided by Springer in its journal Empirica.

Volume (Year): 37 (2010)
Issue (Month): 2 (May)
Pages: 105-125

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Handle: RePEc:kap:empiri:v:37:y:2010:i:2:p:105-125

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Web page: http://www.springerlink.com/link.asp?id=100261

Related research

Keywords: Wage structure; Quantile regression; Machado–Mata decomposition; J22; J31;

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References

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  1. David H. Autor & Lawrence F. Katz & Melissa S. Kearney, 2005. "Rising Wage Inequality: The Role of Composition and Prices," Harvard Institute of Economic Research Working Papers 2096, Harvard - Institute of Economic Research.
  2. Albrecht, James & Björklund, Anders & Vroman, Susan, 2001. "Is There a Glass Ceiling in Sweden?," IZA Discussion Papers 282, Institute for the Study of Labor (IZA).
  3. Thomas Piketty & Emmanuel Saez, 2006. "The Evolution of Top Incomes: A Historical and International Perspective," American Economic Review, American Economic Association, vol. 96(2), pages 200-205, May.
  4. Christopoulou, Rebekka & Jimeno, Juan F. & Lamo, Ana, 2010. "Changes in the wage structure in EU countries," Working Paper Series 1199, European Central Bank.
  5. Fersterer, Josef & Winter-Ebmer, Rudolf, 1999. "Are Austrian Returns to Education Falling Over Time?," CEPR Discussion Papers 2313, C.E.P.R. Discussion Papers.
  6. Thomas Lemieux, 2008. "The changing nature of wage inequality," Journal of Population Economics, Springer, vol. 21(1), pages 21-48, January.
  7. José Mata & José A. F. Machado, 2005. "Counterfactual decomposition of changes in wage distributions using quantile regression," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(4), pages 445-465.
  8. Atkinson, A B, 2008. "The Changing Distribution of Earnings in OECD Countries," OUP Catalogue, Oxford University Press, number 9780199532438.
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Cited by:
  1. René Böheim & Klemens Himpele & Helmut Mahringer & Christine Zulehner, 2011. "The gender pay gap in Austria: Tamensi movetur!," Economics working papers 2011-03, Department of Economics, Johannes Kepler University Linz, Austria.
  2. Böheim, René & Himpele, Klemens & Mahringer, Helmut & Zulehner, Christine, 2013. "The distribution of the gender wage gap in Austria : evidence from matched employer-employee data and tax records," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 46(1), pages 19-34.
  3. Thomas Grandner & Dieter Gstach, 2012. "Decomposing wage discrimination in Germany and Austria with counterfactual densities," Department of Economics Working Papers wuwp145, Vienna University of Economics, Department of Economics.
  4. repec:iab:iabjlr:v:46:i:1:p:19-34 is not listed on IDEAS

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