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Employment protection and wage inequality within education groups in Europe

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  • Perugini, Cristiano
  • Pompei, Fabrizio

Abstract

In this paper we employ EU-Silc microdata for 19 EU member countries in 2007 and 2012 to provide evidence on hourly wage disparities within high-, medium- and low-educated workers. Using quantile regression approaches, we look at individual and institutional determinants of earnings inequality within each cohort and across the wage distribution. Then, by focusing on the employment status (temporary/permanent) of workers, we find that remarkable differences exist in the role played by employment protection of temporary and regular jobs in shaping wage levels, depending on the group of countries, education groups and year considered, with important and group-specific policy implications.

Suggested Citation

  • Perugini, Cristiano & Pompei, Fabrizio, 2016. "Employment protection and wage inequality within education groups in Europe," Journal of Policy Modeling, Elsevier, vol. 38(5), pages 810-836.
    • Handle: RePEc:eee:jpolmo:v:38:y:2016:i:5:p:810-836
    DOI: 10.1016/j.jpolmod.2016.03.015
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    More about this item

    Keywords

    Wage inequality; Education; Temporary jobs; Employment protection legislation; Quantile regression;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

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