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Wage differentials in Belgium: the role of worker and employer characteristics

  • Robert Plasman
  • François Rycx
  • Ilan Tojerow

This paper examines the role of worker and employer characteristics in the determination of wages in the Belgian private sector. Empirical findings, based on detailed matched employer-employee data covering the period 1995-2002, reveal the existence ceteris paribus of: i) a substantial but decreasing return on education, ii) a large and stable gender wage gap, iii) an increasing wage penalty for those employed on a fixed term contract, iv) a positive and persistent employer-size wage effect, v) small and slightly declining regional wage differentials, and vi) a positive but moderate effect of company collective agreements on workers’ wages. Further results show persistent but decreasing wage differentials between workers with the same observed characteristics and working conditions, employed in different sectors.

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Article provided by ULB -- Universite Libre de Bruxelles in its journal Brussels economic review.

Volume (Year): 50 (2007)
Issue (Month): 1 ()
Pages: 11-40

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Handle: RePEc:bxr:bxrceb:y:2007:v:50:i:1:p:11-40
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  22. Margolis, D.N. & Salvanes, K.G., 2001. "Do Firms Really Share Rents with Their Workers?," Papers 11/2001, Norwegian School of Economics and Business Administration-.
  23. Maarten Goos & Jozef Konings, 2001. "Does Rent-Sharing Exist in Belgium ?. An Empirical Analysis Using Firm Level Data," Reflets et perspectives de la vie économique, De Boeck Université, vol. 0(1), pages 65-79.
  24. Síle O'Dorchai & Robert Plasman & François Rycx, 2007. "The part-time wage penalty in European countries: how large is it for men?," International Journal of Manpower, Emerald Group Publishing, vol. 28(1), pages 571 - 603, October.
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  45. repec:cup:cbooks:9780521590730 is not listed on IDEAS
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