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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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  • Wolfgang Pointner & Alfred Stiglbauer, 2010. "Changes in the Austrian structure of wages, 1996–2002: evidence from linked employer-employee data," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 37(2), pages 105-125, May.
    • Handle: RePEc:kap:empiri:v:37:y:2010:i:2:p:105-125
    DOI: 10.1007/s10663-010-9125-4
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    10. Thomas Lemieux, 2006. "Increasing Residual Wage Inequality: Composition Effects, Noisy Data, or Rising Demand for Skill?," American Economic Review, American Economic Association, vol. 96(3), pages 461-498, June.
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    Cited by:

    1. René Böheim & Klemens Himpele & Helmut Mahringer & Christine Zulehner, 2013. "The gender wage gap in Austria: eppur si muove!," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 40(4), pages 585-606, November.
    2. 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 and Business, Department of Economics.
    3. René Böheim & Klemens Himpele & Helmut Mahringer & Christine Zulehner, 2013. "The distribution of the gender wage gap in Austria: evidence from matched employer-employee data and tax records [Eine Auswertung von Steuer- und Sozialversicherungsdaten zur Untersuchung der Verte," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 46(1), pages 19-34, March.
    4. Florentino Felgueroso & Manuel Hidalgo-Pérez & Sergi Jiménez-Martín, 2016. "The Puzzling Fall of the Wage Skill Premium in Spain," Manchester School, University of Manchester, vol. 84(3), pages 390-435, June.
    5. René Böheim & Klemens Himpele & Helmut Mahringer & Christine Zulehner, 2013. "The distribution of the gender wage gap in Austria: evidence from matched employer-employee data and tax records [Eine Auswertung von Steuer- und Sozialversicherungsdaten zur Untersuchung der Verte," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 46(1), pages 19-34, March.
    6. Grandner, Thomas & Gstach, Dieter, 2012. "Decomposing wage discrimination in Germany and Austria with counterfactual densities," Department of Economics Working Paper Series 145, WU Vienna University of Economics and Business.
    7. Marie Ligocká, 2022. "The Gender Wage Gap in EU Countries and its Relation to the Educational Attainment and Type of Employment," ACTA VSFS, University of Finance and Administration, vol. 16(1), pages 23-42.
    8. Rebecca Mitchell & Yun Shen & Lan Snell, 2022. "The future of work: a systematic literature review," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(2), pages 2667-2686, June.
    9. René Böheim & Marian Fink & Christine Zulehner, 2021. "About time: the narrowing gender wage gap in Austria," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 48(4), pages 803-843, November.
    10. Thomas Grandner & Dieter Gstach, 2015. "Decomposing wage discrimination in Germany and Austria with counterfactual densities," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 42(1), pages 49-76, February.
    11. Rainer Eppel & Thomas Leoni & Helmut Mahringer, 2017. "Österreich 2025 – Segmentierung des Arbeitsmarktes und schwache Lohnentwicklung in Österreich," WIFO Monatsberichte (monthly reports), WIFO, vol. 90(5), pages 425-439, May.
    12. 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.
    13. René Böheim & Klemens Himpele & Helmut Mahringer & Christine Zulehner, 2011. "The Gender Pay Gap in Austria: Tamensi Movetur!," WIFO Working Papers 394, WIFO.

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    More about this item

    Keywords

    Wage structure; Quantile regression; Machado–Mata decomposition; J22; J31;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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