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College wage premium over time: trends in Europe in the last 15 years

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  • Elena Crivellaro

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    (Department of Economics, University Of Venice Cà Foscari)

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    Abstract

    While there has been intense debate in the empirical literature over the evolution of the college wage premium in the United States, its evolution in Europe has received little attention. This paper investigates the causes of the evolution of the college wage premium in 12 european countries from 1994 to 2009. I use cross country variation in relative supply, demand, and labour market institutions to examine their effects on the trend in wage inequality. I address possible concerns of endogeneity of the relative supply using an IV strategy exploiting the differential legislations of university autonomy and their variations over time. In explaining the evolution of wage inequality, both market and non-market factors matter: an increase in relative supply decreases the college wage premium; the minimum wage also has a sign?cant and negative effect.

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    Bibliographic Info

    Paper provided by Department of Economics, University of Venice "Ca' Foscari" in its series Working Papers with number 2014:03.

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    Length: 39 pages
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    Handle: RePEc:ven:wpaper:2014:03

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    Keywords: College wage premium; Inequality; Relative supply.;

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