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Wage and Compensation Inequality — How Different?

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Author Info
Selén, Jan () (Trade Union Institute for Economic Research)
Ståhlberg, Ann-Charlotte () (SOFI)
Abstract

The paper compares the distribution of individuals’ wage to the distribution of labor compensation when important non-wage benefits are included. In our study for Sweden focus is on pensions, survivors’ benefits and sickness benefits. These are non-observed. A method of estimating these benefits indirectly is proposed and used to examine their contributions to overall earnings inequality. We find that insurance benefits increased annual earnings inequality by 40 percent. The share of the benefits to total earnings is 22 percent. The effect of the benefits is minor for blue collars and municipal white collars, while it is high for private white collars.

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File URL: http://swopec.hhs.se/fiefwp/papers/WP197.pdf
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Publisher Info
Paper provided by Trade Union Institute for Economic Research in its series Working Paper Series with number 197.

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Length: 21 pages
Date of creation: 07 Dec 2004
Date of revision:
Handle: RePEc:hhs:fiefwp:0197

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Related research
Keywords: Non-wage benefits Compensation inequality Wage inequality Pension benefits Sickness benefits Survivors’ benefits Collective-agreement insurance Social insurance

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Find related papers by JEL classification:
H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Private Pensions

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References listed on IDEAS
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  1. Nekby, Lena, 2002. "Employment Convergence of Immigrants and Natives in Sweden," Research Papers in Economics 2002:9, Stockholm University, Department of Economics. [Downloadable!]
  2. Alexius, Annika & Carlsson, Mikael, 2001. "Measures of Technology and the Business Cycle: Evidence from Sweden and the U.S," Working Paper Series 174, Trade Union Institute for Economic Research. [Downloadable!]
  3. Fredrik Heyman, 2005. "Pay inequality and firm performance: evidence from matched employer--employee data," Applied Economics, Taylor and Francis Journals, vol. 37(11), pages 1313-1327, June. [Downloadable!] (restricted)
    Other versions:
  4. Annika Alexius & Mikael Carlsson, 2005. "Measures of Technology and the Business Cycle," The Review of Economics and Statistics, MIT Press, vol. 87(2), pages 299-307, 06. [Downloadable!] (restricted)
    Other versions:
  5. Pekkarinen, Tuomas & Vartiainen, Juhana, 2002. "Gender Differences in Job Assignment and Promotion in a Complexity Ladder of Jobs," Working Paper Series 184, Trade Union Institute for Economic Research. [Downloadable!]
    Other versions:
  6. Arai, Mahmood & Heyman, Fredrik, 2001. "Wages, Profits and Individual Unemployment Risk : Evidence from Matched Worker-Firm Data," Working Paper Series 172, Trade Union Institute for Economic Research. [Downloadable!]
  7. Arai, Mahmood & Thoursie, Peter Skogman, 2005. "Incentives and selection in cyclical absenteeism," Labour Economics, Elsevier, vol. 12(2), pages 269-280, April. [Downloadable!] (restricted)
    Other versions:
  8. Lundin, Nan Nan, 2004. "Import Competition, Product Differentiation and Mark-Ups - Microeconomic evidence from Swedish manufacturing in the 1990s," Working Paper Series 195, Trade Union Institute for Economic Research. [Downloadable!]
  9. Arai, Mahmood & Vilhelmsson, Roger, 2001. "Immigrants' and Natives' Unemployment-risk: Productivity Differentials or Discrimination?," Working Paper Series 169, Trade Union Institute for Economic Research. [Downloadable!]
  10. Nekby, Lena, 2002. "Gender Differences in Rent Sharing and its Implications for the Gender Wage Gap," Working Paper Series 182, Trade Union Institute for Economic Research. [Downloadable!]
  11. Heyman, Fredrik, 2002. "Wage Dispersion and Job Turnover: Evidence from Sweden," Working Paper Series 181, Trade Union Institute for Economic Research. [Downloadable!]
  12. Alexius, Annika, 2001. "How to Beat the Random Walk," Working Paper Series 175, Trade Union Institute for Economic Research. [Downloadable!]
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This page was last updated on 2008-8-1.


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