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Wage differentials across sectors in Europe: an east-west comparison

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Author Info

  • Iga Magda
  • François Rycx
  • Ilan Tojerow
  • Daphné Valsamis

Abstract

This study compares the structure and determinants of inter-industry wage differentials in Eastern and Western European countries (namely Belgium, Italy, the Netherlands, Norway, Portugal and Spain compared with Latvia, Lithuania, the Czech Republic, Poland and Slovakia). To do so, we use a unique harmonised, linked employer–employee data set, the 2002 European Structure of Earnings Survey. Findings show substantial differences in earnings across sectors in all countries, even when controlling for a wide range of employee, job and employer characteristics. The hierarchy of sectors in terms of wages appears to be quite similar in Eastern and Western European countries. Among high-wage sectors, we find the energy (coke, petroleum, gas, electricity and nuclear power), chemical, financial and computer industries. In contrast, it is in the traditional sectors (wood and cork industry, textile, clothing and leather industry, hotels and restaurants, and retailing) that wages are lowest. Further results suggest that the dispersion of inter-industry wage differentials fluctuates considerably across countries. It is relatively small in Norway and Belgium, large in the Netherlands, Italy, Spain, Poland and the Czech Republic, and very large in Portugal, Latvia, Lithuania and Slovakia. Our findings support the hypothesis of a negative relationship between the dispersion of inter-industry wage differentials and a country’s degree of corporatism.

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Bibliographic Info

Paper provided by ULB -- Universite Libre de Bruxelles in its series Working Papers CEB with number 09-003.RS.

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Length: 24 p.
Date of creation: 2009
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Publication status: Published by:
Handle: RePEc:sol:wpaper:09-003

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Keywords: Inter-industry wage differentials; Collective bargaining; Europe; Matched employer-employee data.;

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References

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Citations

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Cited by:
  1. Oscar Bernal Diaz & Kim Oosterlinck & Ariane Szafarz, 2009. "Observing bailout expectations during a total eclipse of the sun," DULBEA Working Papers 09-01.RS, ULB -- Universite Libre de Bruxelles.
  2. Rebekka Christopoulou & Theodora Kosma, 2011. "Skills and wage inequality in Greece: evidence from matched employer-employee data, 1995-2002," Working Paper Series 1309, European Central Bank.
  3. Philip Du Caju & François Rycx & Ilan Tojerow, 2008. "Rent-Sharing and the Cyclicality of Wage Differentials," Working Papers CEB 08-035.RS, ULB -- Universite Libre de Bruxelles.
  4. Philip Du Caju & Gábor Kátay & Ana Lamo & Daphne Nicolitsas & Steven Poelhekke, 2010. "Inter-industry wage differentials in EU countries : What do cross-country time-varying data add to the picture ?," Working Paper Research 189, National Bank of Belgium.
  5. Charles Plaigin, 2009. "Exploratory study on the presence of cultural and institutional growth spillovers," DULBEA Working Papers 09-03.RS, ULB -- Universite Libre de Bruxelles.
  6. Ilan Tojerow, 2008. "Industry wage differential, rent sharing and gender in Belgium," DULBEA Working Papers 08-20.RS, ULB -- Universite Libre de Bruxelles.
  7. Nuno Crespo & Nádia Simões & José Castro Pinto, 2013. "Determinant factors of job quality in Europe," Working Papers Series 2 bruwp1301, ISCTE-IUL, Business Research Unit (BRU-IUL).
  8. Pierre-Guillaume Méon & Ariane Szafarz, 2008. "Labour market discrimination as an agency cost," Working Papers CEB 08-019.RS, ULB -- Universite Libre de Bruxelles.
  9. repec:ese:iserwp:2009-13 is not listed on IDEAS

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