Changes in the wage structure in EU countries
AbstractWe study changes in the wage structures in nine EU countries over 1995-2002 and the role of demand, supply and institutional developments in shaping these changes. Using comparable cross-country microeconomic data, we compute for each country and at each decile of the wage distribution, the part of the observed wage change that is due to changes in the composition of workers, employers, and jobs’ characteristics, and the part due to changes in the returns to these characteristics. We find that composition effects derived from changes in age, gender or education of the labour force, largely exogenous to economic developments, had a minor contribution to the observed wage dynamics. In contrast, return and composition effects from characteristics likely driven by economic developments are found most relevant to explain the observed changes. We relate wages and their various components with macroeconomic and institutional trends and find that technology and globalisation are associated with wage increases; migration is associated with declines in wages; whereas the effect of labour market institutions has been mixed.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Banco de Espa�a in its series Banco de Espa�a Working Papers with number 1017.
Length: 39 pages
Date of creation: Jun 2010
Date of revision:
Wage Structure; Quantile Regressions;
Other versions of this item:
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-07-03 (All new papers)
- NEP-EUR-2010-07-03 (Microeconomic European Issues)
- NEP-LAB-2010-07-03 (Labour Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Philip Du Caju & Gábor Kátay & Ana Lamo & Daphne Nicolitsas & Steven Poelhekke, 2010.
"Inter-industry wage differentials in EU countries : What do cross-country time-varying data add to the picture ?,"
Working Paper Research
189, National Bank of Belgium.
- Philip Du Caju & Gábor Kátay & Ana Lamo & Daphne Nicolitsas & Steven Poelhekke, 2010. "Inter-Industry Wage Differentials In EU Countries: What Do Cross-Country Time Varying Data Add to the Picture?," Journal of the European Economic Association, MIT Press, vol. 8(2-3), pages 478-486, 04-05.
- Du Caju, Philip & Kátay, Gábor & Lamo, Ana & Nicolitsas, Daphne & Poelhekke, Steven, 2010. "Inter-industry wage differentials in EU countries: what do cross-country time varying data add to the picture?," Working Paper Series 1182, European Central Bank.
- Philip Du Caju & Gábor Kátay & Ana Lamo & Daphne Nicolitsas & Steven Poelhekke, 2010. "Inter-industry wage differentials in EU countries: what do cross-country time varying data add to the picture?," MNB Working Papers 2010/9, Magyar Nemzeti Bank (the central bank of Hungary).
- Philip Du Caju & Gábor Kátay & Ana Lamo & Daphne Nicolitsas & Steven Poelhekke, 2010. "Inter-industry wage differentials in EU countries: what do cross-country time varying data add to the picture?," Working Papers 121, Bank of Greece.
- Dustmann, Christian & Ludsteck, Johannes & Schönberg, Uta, 2007.
"Revisiting the German Wage Structure,"
IZA Discussion Papers
2685, Institute for the Study of Labor (IZA).
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Â¿Vale la pena estudiar? (VI) La inusual caÃda de la ganancia salarial resultante de la educaciÃ³n avanzada
by Luis Garicano in Nada Es Gratis on 2010-12-08 23:30:40
- Raquel Carrasco & Juan F. Jimeno & A. Carolina Ortega, 2011. "Accounting for changes in the Spanish wage distribution: the role of employment Composition effects," Banco de Espaï¿½a Working Papers 1120, Banco de Espa�a.
- Pointner, Wolfgang & Stiglbauer, Alfred, 2010.
"Changes in the Austrian structure of wages, 1996-2002: evidence from linked employer-employee data,"
Working Paper Series
1268, European Central Bank.
- Wolfgang Pointner & Alfred Stiglbauer, 2010. "Changes in the Austrian structure of wages, 1996–2002: evidence from linked employer-employee data," Empirica, Springer, vol. 37(2), pages 105-125, May.
- Rebekka Christopoulou & Theodora Kosma, 2009. "Skills and Wage Inequality in Greece: Evidence from Matched Employer-Employee Data, 1995-2002," GreeSE â Hellenic Observatory Papers on Greece and Southeast Europe 26, Hellenic Observatory, LSE.
- Bergin, Adele & Kelly, Elish & McGuinness, Seamus, 2012. "Explaining Changes in Earnings and Labour Costs During the Recession," Papers EC9, Economic and Social Research Institute (ESRI).
- Christopoulou, Rebekka & Kosma, Theodora, 2011.
"Skills and wage inequality in Greece: evidence from matched employer-employee data, 1995-2002,"
Working Paper Series
1309, European Central Bank.
- Rebekka Christopoulou & Theodora Kosma, 2011. "Skills and wage inequality in Greece: evidence from matched employer-employee data, 1995-2002," Working Papers 123, Bank of Greece.
- Andrea Brandolini & Alfonso Rosolia & Roberto Torrini, 2011. "The distribution of employees’ labour earnings in the European Union: Data, concepts and first results," Working Papers 198, ECINEQ, Society for the Study of Economic Inequality.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mar�a Beiro. Electronic Dissemination of Information Unit. Research Department. Banco de Espa�a).
If references are entirely missing, you can add them using this form.