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Changes in the Wage Distribution in Austria: An Analysis Based on European Union Structure of Earnings Survey Data

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Abstract

The dispersion of hourly wages in Austria hardly changed between 1996 and 2002. Somewhat weaker growth at the bottom of the distribution implies that wage inequality increased slightly. Compared with other EU countries, however, the distribution of wages remained remarkably stable in Austria. A decomposition of the changes in the wage distribution shows that the relatively small overall change is attributable to some contrasting developments. Apparently, both market-driven and predetermined factors contributed to this marginal increase in wage inequality. In particular, higher education levels and higher returns to education caused stronger growth in the upper wage dispersion range. At the same time, the rise in women’s participation in the workforce was one of the main reasons for lower wages to grow less strongly. These developments caused higher wage inequality on the one hand; on the other hand, the returns to general work experience deteriorated, which, in turn, had an equalizing effect on wages. The data also show that the differences in wages for men and women remained almost unchanged over time.

Suggested Citation

  • Wolfgang Pointner & Alfred Stiglbauer, 2010. "Changes in the Wage Distribution in Austria: An Analysis Based on European Union Structure of Earnings Survey Data," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 3, pages 45-58.
    • Handle: RePEc:onb:oenbmp:y:2010:i:3:b:3
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    File URL: https://www.oenb.at/dam/jcr:3d980564-33f5-48b8-a72b-97a17af19922/mop_2010_q3_analyses03_tcm16-212051.pdf
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    Cited by:

    1. 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.

    More about this item

    Keywords

    wage structure; quantile regression; Machado-Mata decomposition; European Union;
    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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