The distribution of employees’ labour earnings in the European Union: Data, concepts and first results
AbstractThis paper studies the distribution of labour earnings among employees within the EU using data from Wave 2007-1 of the Community Statistics on Income and Living Conditions (EUSILC). The review of available information and the comparisons with external sources show that the EU-SILC data are not exempt from problems, particularly in some countries, yet can be fruitfully used to study the distribution of earnings in the EU; they also allow researchers to assess the sensitivity of results to various concepts of labour earnings. The ranking of countries by median full-time equivalent monthly gross earnings shows Eastern European nations at the bottom and Luxembourg at the top; earnings differences are sizeable, both across and within countries. Taking the euro area and the EU-25 (excluding Malta, for which data are unavailable) as a whole, inequality is higher when earnings are measured in euro at market rates rather than at purchasing power parities. The wage distribution is wider in the EU-25 than in the euro area, which is not surprising given that the former includes the poorer Eastern European countries that joined the Union in 2004. The higher inequality observed in the EU-25 is largely attributable to differences between countries, which are essentially due to the returns to individual attributes rather than to a different composition of the workforce with respect to these attributes.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 198.
Length: 26 pages
Date of creation: 2011
Date of revision:
wage inequality; EU and euro area labour markets.;
Find related papers by JEL classification:
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- D33 - Microeconomics - - Distribution - - - Factor Income Distribution
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-06-11 (All new papers)
- NEP-EEC-2011-06-11 (European Economics)
- NEP-EUR-2011-06-11 (Microeconomic European Issues)
- NEP-LAB-2011-06-11 (Labour Economics)
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.:
- Christopoulou, Rebekka & Jimeno, Juan F. & Lamo, Ana, 2010.
"Changes in the wage structure in EU countries,"
Working Paper Series
1199, European Central Bank.
- Thierry Lallemand & Robert Plasman & François Rycx, 2007.
"The establishment-size wage premium: evidence from European countries,"
ULB Institutional Repository
2013/8735, ULB -- Universite Libre de Bruxelles.
- Thierry Lallemand & Robert Plasman & FranÃ§ois Rycx, 2007. "The establishment-size wage premium: evidence from European countries," Empirica, Springer, vol. 34(5), pages 427-451, December.
- Thierry Lallemand & Robert Plasman & François Rycx, 2005. "The establishment-size wage premium: evidence from European countries," DULBEA Working Papers 05-07.RS, ULB -- Universite Libre de Bruxelles.
- Lallemand, Thierry & Plasman, Robert & Rycx, Francois, 2005. "The Establishment-Size Wage Premium: Evidence from European Countries," IZA Discussion Papers 1569, Institute for the Study of Labor (IZA).
- Enrico Moretti, 2008.
"Real Wage Inequality,"
NBER Working Papers
14370, National Bureau of Economic Research, Inc.
- Moretti, Enrico, 2008. "Real Wage Inequality," CEPR Discussion Papers 6997, C.E.P.R. Discussion Papers.
- Moretti, Enrico, 2008. "Real Wage Inequality," IZA Discussion Papers 3706, Institute for the Study of Labor (IZA).
- Enrico Moretti, 2008. "Real Wage Inequality," Working Paper Series 34-08, The Rimini Centre for Economic Analysis, revised Jan 2008.
- Atkinson, A B, 2008. "The Changing Distribution of Earnings in OECD Countries," OUP Catalogue, Oxford University Press, number 9780199532438.
- Giuseppe Bertola, 2010.
"Inequality, integration, and policy: issues and evidence from EMU,"
Journal of Economic Inequality,
Springer, vol. 8(3), pages 345-365, September.
- Bertola, Giuseppe, 2009. "Inequality, Integration, and Policy: Issues and evidence from EMU," CEPR Discussion Papers 7251, C.E.P.R. Discussion Papers.
- Andrea Brandolini, 2007. "Measurement of income distribution in supranational entities: the case of the European Union," Temi di discussione (Economic working papers) 623, Bank of Italy, Economic Research and International Relations Area.
- José Mata & José A. F. Machado, 2005. "Counterfactual decomposition of changes in wage distributions using quantile regression," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(4), pages 445-465.
- Torrini, Roberto, 2005.
"Cross-country differences in self-employment rates: the role of institutions,"
Elsevier, vol. 12(5), pages 661-683, October.
- Roberto Torrini, 2002. "Cross-country differences in self-employment rates: the role of institutions," Temi di discussione (Economic working papers) 459, Bank of Italy, Economic Research and International Relations Area.
- Andreas Behr & Ulrich Pötter, 2010. "What determines wage differentials across the EU?," Journal of Economic Inequality, Springer, vol. 8(1), pages 101-120, March.
- Sudhir Anand & Paul Segal, 2008. "What Do We Know about Global Income Inequality?," Journal of Economic Literature, American Economic Association, vol. 46(1), pages 57-94, March.
- Beblo, Miriam & Knaus, Thomas, 2001. "Measuring Income Inequality in Euroland," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 47(3), pages 301-20, September.
- Melly, Blaise, 2005. "Decomposition of differences in distribution using quantile regression," Labour Economics, Elsevier, vol. 12(4), pages 577-590, August.
- Jens Holscher & Cristiano Perugini & Fabrizio Pompei, 2011. "Wage inequality, labour market flexibility and duality in Eastern and Western Europe," Post-Communist Economies, Taylor & Francis Journals, vol. 23(3), pages 271-310.
- Brian Nolan & Ive Marx & Wiemer Salverda, 2011. "GINI DP 9: Comparable Indicators of Inequality Across Countries," GINI Discussion Papers 9, AIAS, Amsterdam Institute for Advanced Labour Studies.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Maria Ana Lugo).
If references are entirely missing, you can add them using this form.