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Are middle-paid jobs in OECD countries disappearing? : An overview

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  • Kolev, Alexandre
  • Saget, Catherine
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    Abstract

    This paper provides evidence that from 1985 to 2005, two thirds of OECD countries have seen an increase in earnings inequality. In nearly half of these countries, the widening was driven by an increase in inequality at both the top and the bottom of the distribution. In the other half, rising overall inequality was reflecting a relative increase in high earnings only. This paper also reviews the literature and shows that in several OECD countries, a rise in low-paid employment and a process of polarisation in net employment growth have been observed. The factors behind the increase in earnings inequality and job polarization are multiple and include the influences on labour demand and labour supply incentives, as well as institutional factors (minimum wages, the employment relationship, etc).

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    File URL: http://www.ilo.org/public/libdoc/ilo/2010/110B09_77_engl.pdf
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    Bibliographic Info

    Paper provided by International Labour Organization in its series ILO Working Papers with number 456740.

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    Length: 30 pages
    Date of creation: 2010
    Date of revision:
    Publication status: Published in Working paper series, International Labour Office.
    Handle: RePEc:ilo:ilowps:456740

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    Related research

    Keywords: wage differential; low wages; trend; OECD countries; disparité des salaires; bas salaire; tendance; pays de l'OCDE; diferencia del salario; salario bajo; tendencia; países de la OCDE;

    References

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    1. Koeniger, Winfried & Leonardi, Marco & Nunziata, Luca, 2004. "Labour Market Institutions and Wage Inequality," IZA Discussion Papers 1291, Institute for the Study of Labor (IZA).
    2. Fiorio, Carlo V & Saget, Catherine, 2010. "Reducing or aggravating inequality? : Preliminary findings from the 2008 financial crisis," ILO Working Papers 456487, International Labour Organization.
    3. Carlo Dell'Aringa & Laura Pagani, 2007. "Collective Bargaining and Wage Dispersion in Europe," British Journal of Industrial Relations, London School of Economics, vol. 45(1), pages 29-54, 03.
    4. David H. Autor & Lawrence F. Katz & Melissa S. Kearney, 2008. "Trends in U.S. Wage Inequality: Revising the Revisionists," The Review of Economics and Statistics, MIT Press, vol. 90(2), pages 300-323, May.
    5. Francine D. Blau & Lawrence M. Kahn, 1996. "International Differences in Male Wage Inequality: Institutions versus Market Forces," NBER Working Papers 4678, National Bureau of Economic Research, Inc.
    6. Blanchard, Olivier & Wolfers, Justin, 2000. "The Role of Shocks and Institutions in the Rise of European Unemployment: The Aggregate Evidence," Economic Journal, Royal Economic Society, vol. 110(462), pages C1-33, March.
    7. David Card & John E. DiNardo, 2002. "Skill Biased Technological Change and Rising Wage Inequality: Some Problems and Puzzles," NBER Working Papers 8769, National Bureau of Economic Research, Inc.
    8. Maarten Goos & Alan Manning, 2003. "Lousy and Lovely Jobs: the Rising Polarization of Work in Britain," CEP Discussion Papers dp0604, Centre for Economic Performance, LSE.
    9. David S. Lee, 1999. "WAGE INEQUALITY IN THE UNITED STATES DURING THE 1980s: RISING DISPERSION OR FALLING MINIMUM WAGE?," The Quarterly Journal of Economics, MIT Press, vol. 114(3), pages 977-1023, August.
    10. Cardoso, Ana Rute, 2006. "Wage mobility: do institutions make a difference?," Labour Economics, Elsevier, vol. 13(3), pages 387-404, June.
    11. Katz, L.F. & Murphy, K.M., 1991. "Changes in Relative Wages, 1963-1987: Supply and Demand Factors," Harvard Institute of Economic Research Working Papers 1580, Harvard - Institute of Economic Research.
    12. Maarten Goos & Alan Manning, 2003. "Lousy and lovely jobs: the rising polarization of work in Britain," LSE Research Online Documents on Economics 20002, London School of Economics and Political Science, LSE Library.
    13. Blum, Bernardo S., 2008. "Trade, technology, and the rise of the service sector: The effects on US wage inequality," Journal of International Economics, Elsevier, vol. 74(2), pages 441-458, March.
    14. Orsetta Causa, 2008. "Explaining Differences in Hours Worked among OECD Countries: An empirical analysis," OECD Economics Department Working Papers 596, OECD Publishing.
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    Cited by:
    1. Ritzen, Jo & Zimmermann, Klaus F., 2013. "A Vibrant European Labor Market with Full Employment," IZA Policy Papers 73, Institute for the Study of Labor (IZA).

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