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Wage Differentials in Belgium: The Role of Worker and Employer Characteristics

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Author Info
Robert Plasman () (DULBEA, Université libre de Bruxelles, Brussels)
François Rycx () (DULBEA, Université libre de Bruxelles, Brussels)
Ilan Tojerow () (DULBEA, Université libre de Bruxelles, Brussels)

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Abstract

This paper examines the role of worker and employer characteristics in the determination of wages in the Belgian private sector. Empirical findings, based on detailed matched employer-employee data covering the period 1995-2002, reveal the existence ceteris paribus of: i) a substantial but decreasing return on education, ii) a large and stable gender wage gap, iii) an increasing wage penalty for those employed on a fixed term contract, iv) a positive and persistent employer-size wage effect, v) small and slightly declining regional wage differentials, and vi) a positive but moderate effect of company collective agreements on workers’ wages. Further results show persistent but decreasing wage differentials between workers with the same observed characteristics and working conditions, employed in different sectors.

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Paper provided by Université libre de Bruxelles, Department of Applied Economics (DULBEA) in its series Working Papers DULBEA with number 07-12.RS.

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Length: 36 pages
Date of creation: Oct 2007
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Handle: RePEc:dul:wpaper:07-12rs

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Related research
Keywords: Wage structure matched employer-employee data Belgium.

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Find related papers by JEL classification:
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts

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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.:
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Cited by:
(explanations, 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.)

  1. Abdeslam Marfouk, 2008. "The African Brain Drain: Scope and Determinants," Working Papers DULBEA 08-07.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
  2. Hassan Ayoub & Jérôme Creel & Etienne Farvaque, 2008. "Détermination du niveau des prix et finances: le cas du Liban, 1965-2005," Working Papers DULBEA 08-10.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
  3. Henri Capron, 2007. "Politique de cohésion et développement régional," Working Papers DULBEA 07-16.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
  4. Olivier Debande & Jean-Luc De Meulemeester, 2008. "Quality and variety competition in higher education," Working Papers DULBEA 08-12.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
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  5. Ariane Szafarz, 2007. "Hiring People-like-Yourself: A Representation of Discrimination on the Job Market," Working Papers DULBEA 07-21.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
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  6. Henri Capron & Michele Cincera, 2007. "EU Pre-competitive and Near-the-Market S&T Collaborations," Working Papers DULBEA 07-17.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
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  7. Benoît Mahy & François Rycx & Mélanie Volral, 2008. "L’influence de la dispersion salariale sur la performance des grandes entreprises belges," Working Papers DULBEA 08-13.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
  8. Jean-Luc De Meulemeester, 2007. "L'Economie de l'Education fait-elle des Progrès? Une Perspective d'Histoire de la Pensée Economique," Working Papers DULBEA 07-15.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
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  9. Sîle O'Dorchai, 2008. "Pay inequality in 25 European countries," Working Papers DULBEA 08-06.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
  10. Jérôme de Henau & Leila Maron & Danièle Meulders, 2007. "Travail et Maternité en Europe, COnditions de Travail et Politiques Publiques," Working Papers DULBEA 07-14.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
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