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Inter-Industry Wage Differentials: What Do We Know?

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  • François Rycx
  • Ilan Tojerow

Abstract

Substantial wage differentials are observed in all countries between workers employed in different sectors. How can we explain these wage differentials? Do they entirely derive from the sectoral diversity in personal productive characteristics and task descriptions or do employer features also play a role? Are inter-industry wage differentials smaller in countries with centralised and coordinated collective bargaining? Are they shaped by international trade and product market regulations? What is their impact on gender and other types of inequality? Do they affect economic performance? These are the main questions that we address in this review of the literature.
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Suggested Citation

  • François Rycx & Ilan Tojerow, 2007. "Inter-Industry Wage Differentials: What Do We Know?," Reflets et perspectives de la vie économique, De Boeck Université, vol. 0(2), pages 13-22.
    • Handle: RePEc:cai:rpvedb:rpve_462_0013
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    Cited by:

    1. Stephan Kampelmann, 2011. "The Socio-Economics of Pay Rules," ULB Institutional Repository 2013/268040, ULB -- Universite Libre de Bruxelles.
    2. 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?," Journal of the European Economic Association, MIT Press, vol. 8(2-3), pages 478-486, 04-05.
    3. Plasman, Robert & Rycx, François & Tojerow, Ilan, 2006. "Industry Wage Differentials, Unobserved Ability, and Rent-Sharing: Evidence from Matched Worker-Firm Data, 1995-2002," IZA Discussion Papers 2387, Institute of Labor Economics (IZA).
    4. Philip Du Caju & François Rycx & Ilan Tojerow, 2011. "Inter‐Industry Wage Differentials: How Much Does Rent Sharing Matter?," Manchester School, University of Manchester, vol. 79(4), pages 691-717, July.
    5. Du Caju, Philip & Rycx, François & Tojerow, Ilan, 2008. "Rent-Sharing and the Cyclicality of Wage Differentials," IZA Discussion Papers 3844, Institute of Labor Economics (IZA).
    6. Philip Du Caju & François Rycx & Ilan Tojerow, 2012. "Wage structure effects of international trade in a small open economy: the case of Belgium," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 148(2), pages 297-331, June.
    7. Brenda Gannon & Robert Plasman & Francois Rycx & Ilan Tojerow, 2007. "Inter-Industry Wage Differentials and the Gender Wage Gap: Evidence from European Countries," The Economic and Social Review, Economic and Social Studies, vol. 38(1), pages 135-155.
    8. Robert Plasman & François Rycx & Ilan Tojerow, 2006. "Industry wage differentials, unobserved ability, and rent-sharing: evidence from matched employer-employee, 1992-2005," DULBEA Working Papers 06-14.RS, ULB -- Universite Libre de Bruxelles.
    9. Robert Plasman & François Rycx & Ilan Tojerow, 2007. "Wage differentials in Belgium: the role of worker and employer characteristics," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 50(1), pages 11-40.
    10. Sabien Dobbelaere & Mark Vancauteren, 2014. "Market imperfections, skills and total factor productivity : Firm-level evidence on Belgium and the Netherlands," Working Paper Research 267, National Bank of Belgium.
    11. David Card & Jesse Rothstein & Moises Yi, 2024. "Industry Wage Differentials: A Firm-Based Approach," Journal of Labor Economics, University of Chicago Press, vol. 42(S1), pages 11-59.
    12. Philip Du Caju & François Rycx & Ilan Tojerow, 2011. "Wage Structure Effects of International Trade: Evidence from a Small Open Economy," Working Papers CEB 11-011, ULB -- Universite Libre de Bruxelles.
    13. Magda, Iga & Rycx, François & Tojerow, Ilan & Valsamis, Daphné, 2008. "Wage Differentials across Sectors in Europe: An East-West Comparison," IZA Discussion Papers 3830, Institute of Labor Economics (IZA).
    14. Gornig, Martin & Goebel, Jan, 2018. "Deindustrialisation and the polarisation of household incomes: The example of urban agglomerations in Germany," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 55(4), pages 790-806.
    15. Brenda Gannon & Brian Nolan, 2004. "Inter-Industry Wage Differentials in Ireland," The Economic and Social Review, Economic and Social Studies, vol. 35(2), pages 157-182.
    16. Yao Yao & Zheng Li, 2022. "The Impacts of Industry Wage Premiums and Education Levels on Gender Inequality: Evidence from Five Developed Countries," LIS Working papers 832, LIS Cross-National Data Center in Luxembourg.
    17. Amir Borges Ferreira Neto & Ricardo Da Silva Fregugli, 2014. "How Much Does Talent Matter? Evidences From The Brazilian Formal Cultural Industry," Anais do XLI Encontro Nacional de Economia [Proceedings of the 41st Brazilian Economics Meeting] 233, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    18. Danièle Meulders & Robert Plasman & François Rycx, 2005. "Les inégalités salariales de genre : expliquer l'injustifiable ou justifier l'inexplicable," Reflets et perspectives de la vie économique, De Boeck Université, vol. 0(2), pages 95-107.
    19. Dorota Witkowska, 2013. "Gender Disparities in the Labor Market in the EU," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 19(4), pages 331-354, November.
    20. Jan Drahokoupil & Agnieszka Piasna, 2018. "What is behind low wages in central and eastern Europe?," Post-Communist Economies, Taylor & Francis Journals, vol. 30(4), pages 421-439, July.
    21. Nuno Crespo & Nádia Simões & José Castro Pinto, 2013. "Determinant factors of job quality in Europe," Working Papers Series 2 13-01, ISCTE-IUL, Business Research Unit (BRU-IUL).
    22. Maritza López-Novella & Salimata Sissoko, 2009. "Working Paper 12-09 - Salaires et négociation collective en Belgique : une analyse microéconomique en panel," Working Papers 0912, Federal Planning Bureau, Belgium.

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