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On the Slide? Salary Scales for New Graduates 2004-2012

Author

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  • Conefrey, Thomas

    (Central Bank of Ireland)

  • Smith, Richard

    (Central Bank of Ireland)

Abstract

Using data from a survey of degree graduates, this Letter presents some new empirical evidence on trends in starting salaries for new graduate labour market entrants pre and post the downturn in the Irish economy. While aggregate wage data suggest that the extent of downward wage adjustment in the Irish economy since 2008 has been small, this analysis provides evidence of a signi cant decline in starting salaries for new graduates between 2008 and 2012. This indicates that aggregate data likely mask a considerable degree of heterogeneity in wage movements among di erent individuals and cohorts in the workforce. We note that the adjustment in graduate salaries, with the consequent impact on average starting salaries, provides one possible explanation for the weakness in economy-wide earnings in 2013 despite strong employment growth and signs of economic recovery.

Suggested Citation

  • Conefrey, Thomas & Smith, Richard, 2014. "On the Slide? Salary Scales for New Graduates 2004-2012," Economic Letters 01/EL/14, Central Bank of Ireland.
    • Handle: RePEc:cbi:ecolet:01/el/14
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    File URL: https://centralbank.ie/docs/default-source/publications/economic-letters/economic-letter---vol-2014-no-1.pdf?sfvrsn=10
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    References listed on IDEAS

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    1. Aedín Doris & Donal O’Neill & Olive Sweetman, 2015. "Wage flexibility and the great recession: the response of the Irish labour market," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-24, December.
    2. Lindbeck, Assar & Snower, Dennis J, 1988. " Job Security, Work Incentives and Unemployment," Scandinavian Journal of Economics, Wiley Blackwell, vol. 90(4), pages 453-474.
    3. Bergin, Adele & Kelly, Elish & McGuinness, Seamus, 2012. "Explaining Changes in Earnings and Labour Costs During the Recession," Papers EC9, Economic and Social Research Institute (ESRI).
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    Cited by:

    1. Chapman, Bruce & Doris, Aedín, 2019. "Modelling higher education financing reform for Ireland," Economics of Education Review, Elsevier, vol. 71(C), pages 109-119.
    2. Linehan, Suzanne & Lydon, Reamonn & Scally, John, 2015. "Labour Cost Adjustment during the Crisis: Firm-level Evidence," Quarterly Bulletin Articles, Central Bank of Ireland, pages 73-92, July.
    3. Fernández-Macías, Enrique & Muñoz de Bustillo, Rafael & Antón, José-Ignacio, 2014. "Job quality in Europe in the first decade of the 21st Century," MPRA Paper 58148, University Library of Munich, Germany.

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