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Less Income Inequality and More Growth – Are they Compatible? Part 7. The Drivers of Labour Earnings Inequality – An Analysis Based on Conditional and Unconditional Quantile Regressions

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  • Jean-Marc Fournier
  • Isabell Koske

Abstract

Unconditional and conditional quantile regressions are used to explore the determinants of labour earnings at different parts of the distribution and, hence, the determinants of overall labour earnings inequality. The analysis combines several household surveys to provide comparable estimates for 32 countries. The empirical work suggests that, in general, a rise in the share of workers with an upper-secondary or post-secondary non-tertiary degree, a rise in trade union membership, a rise in the share of public employment and a rise in the share of workers on permanent contracts are associated with a narrowing of the earnings distribution. By contrast, a shift in the sector composition of the economy is not found to have a large impact on overall earnings inequality. As for tertiary education, the impact remains ambiguous as there are several offsetting forces. Moins d'inégalités de revenu et plus de croissance – Ces deux objectifs sont-ils compatibles? : Partie 7. Les facteurs des inégalités de revenu – analyse fondée sur des régressions quantiles conditionnelles et inconditionnelles On utilise les regressions quantiles conditionnelles et inconditionnelles pour etudier les determinants des revenus du travail le long de la distribution et, par voie de consequence, les determinants des inegalites de revenus du travail. Cette analyse regroupe plusieurs enquetes menees aupres des menages afin de produire des estimations comparables pour 32 pays. Les travaux econometriques suggerent qu.en general, l.augmentation de la part des travailleurs titulaires d.un diplome du deuxieme cycle de l.enseignement secondaire ou post-secondaire, non universitaire, la montee de l.adhesion syndicale, le gonflement de la part de l.emploi public et la hausse de la part des travailleurs sous contrat a duree indeterminee ont pour corollaire un resserrement de la repartition des revenus. En revanche, selon les conclusions de l.etude, l.evolution de la composition sectorielle de l.economie n.a pas d.impact important sur les inegalites globales de revenu. Pour ce qui est de l.enseignement superieur, l.impact n.est pas net car plusieurs effets jouent dans des directions opposees.

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Bibliographic Info

Paper provided by OECD Publishing in its series OECD Economics Department Working Papers with number 930.

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Date of creation: 09 Jan 2012
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Handle: RePEc:oec:ecoaaa:930-en

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Keywords: education; income inequality; quantile regression; union membership; labour income; public employment; temporary work contract; adhésion syndicale; emploi public; revenus du travail; contrats à durée déterminée; régression quantile; inégalité des revenus; éducation;

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References

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Cited by:
  1. Stéphanie Jamet & Thomas Chalaux & Vincent Koen, 2013. "Labour Market and Social Policies to Foster More Inclusive Growth in Sweden," OECD Economics Department Working Papers 1023, OECD Publishing.
  2. Vassiliki Koutsogeorgopoulou & Manos Matsaganis & Chrysa Leventi & Jan-David Schneider, 2014. "Fairly Sharing the Social Impact of the Crisis in Greece," OECD Economics Department Working Papers 1106, OECD Publishing.
  3. Łukasz Rawdanowicz & Eckhard Wurzel & Ane Kathrine Christensen, 2013. "The Equity Implications of Fiscal Consolidation," OECD Economics Department Working Papers 1013, OECD Publishing.
  4. Rafal Kierzenkowski & Isabell Koske, 2012. "Less Income Inequality and More Growth – Are they Compatible? Part 8. The Drivers of Labour Income Inequality – A Literature Review," OECD Economics Department Working Papers 931, OECD Publishing.
  5. Peter Hoeller & Isabelle Joumard & Mauro Pisu & Debra Bloch, 2012. "Less Income Inequality and More Growth – Are They Compatible? Part 1. Mapping Income Inequality Across the OECD," OECD Economics Department Working Papers 924, OECD Publishing.
  6. Herr, Hansjörg & Ruoff, Bea, 2014. "Wage dispersion : empirical developments, explanations, and reform options," ILO Working Papers, International Labour Organization 485325, International Labour Organization.
  7. Thomas Grandner & Dieter Gstach, 2012. "Decomposing wage discrimination in Germany and Austria with counterfactual densities," Department of Economics Working Papers wuwp145, Vienna University of Economics, Department of Economics.
  8. Isabell Koske & Jean-Marc Fournier & Isabelle Wanner, 2012. "Less Income Inequality and More Growth – Are They Compatible? Part 2. The Distribution of Labour Income," OECD Economics Department Working Papers 925, OECD Publishing.

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