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What drives wage differentials in Greece: workplaces or workers?

Author

Listed:
  • Theodora Kosma

    (Bank of Greece)

  • Pavlos Petroulas

    (Bank of Greece)

  • Evangelia Vourvachaki

    (Bank of Greece)

Abstract

Using a micro-aggregated dataset that contains gross wages as well as employer and employee characteristics, we investigate whether observed wage differentials in Greece reflect mostly the underlying variation in employer characteristics, i.e. the structure of the Greek production, or worker and job characteristics. Our results show that both employer and worker characteristics are important contributors to the observed wage dispersion of full-time private sector jobs in Greece. Occupation and workplace effects alone explain around 52% of the overall wage vari-ation in Greece. An additional 11% is explained by controlling for the impact of workplace-occu-pation matching. Other observable characteristics of the workers such as age, gender and type of job contract add up to 23.5% more explanatory power. Finally, our results also show that both the observed gender and contract type wage gaps are more prevalent among high-skilled occu-pations, acting thus as a disincentive to the acquisition of skills.

Suggested Citation

  • Theodora Kosma & Pavlos Petroulas & Evangelia Vourvachaki, 2020. "What drives wage differentials in Greece: workplaces or workers?," Economic Bulletin, Bank of Greece, issue 52, pages 69-72, December.
    • Handle: RePEc:bog:econbl:y:2020:i:52:p:69-72
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    More about this item

    Keywords

    wage differentials; micro-aggregated data; wage gap;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General

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