The increased supply of skilled labour and institutional factors have been advanced in an effort to explain why some countries have experienced smaller increases in earnings dispersion and in returns to education relative to the United States. Ireland’s supply of skilled labour has increased sharply in recent years and it has had a highly centralized wage bargaining structure; hence, low growth in earnings dispersion would be expected. We compare the distribution of earnings in Ireland in 1987–94 and find a surprisingly large growth in earnings dispersion. In addition, using a decomposition technique we find that much of this is accounted for by increasing returns to education.
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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number
1679.
Find related papers by JEL classification: J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
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