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Sources of Earnings Dispersion in a Linked Employer-Employee Dataset: Evidence from Norway

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Author Info

  • Salvanes, K.G.
  • Burgess, S.
  • Lane, J.

Abstract

We estimate a standard human capital earnings model, augmented to allow for different firm-specific wage premia. The earnings of an individual depend on her human capital bundle and the earnings mark-up of the firm she is currently working for. We use linked employer-employee data from Norway which allows us to directly estimate the skill premium as a function of firm specific variables such as plant size, the capital/labour ratio, market share, unionisation and openness to trade. We document the impact of job reallocation and skill sorting on earnings dispersion. We find a large potential effect of labour reallocation on earnings dispersion.

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Bibliographic Info

Paper provided by Norwegian School of Economics and Business Administration- in its series Papers with number 22/98.

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Length: 33 pages
Date of creation: 1998
Date of revision:
Handle: RePEc:fth:norgee:22/98

Contact details of provider:
Postal: NORWEGIAN SCHOOL OF ECONOMICS AND BUSINESS ADMINISTRATION, HELLEVEIEN 30, 5035 BERGEN SANDVIKEN NORWAY.
Phone: 5595 9000
Fax: 5595 9100
Email:
Web page: http://www.nhh.no/
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Keywords: BUSINESS ORGANIZATION ; PRODUCTION ; INCOME;

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Cited by:
  1. Philip Du Caju & François Rycx & Ilan Tojerow, 2011. "Wage Structure Effects of International Trade: Evidence from a Small Open Economy," Working Papers CEB 11-011, ULB -- Universite Libre de Bruxelles.
  2. Nannan Lundin & Lihong Yun, 2009. "International Trade and Inter-Industry Wage Structure in Swedish Manufacturing: Evidence from Matched Employer-Employee Data," Review of International Economics, Wiley Blackwell, vol. 17(1), pages 87-102, 02.
  3. Meng, Xin, 2004. "Gender earnings gap: the role of firm specific effects," Labour Economics, Elsevier, vol. 11(5), pages 555-573, October.

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