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Differences and Changes in Wage Structures

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  • Freeman, Richard B.
  • Katz, Lawrence F.

Abstract

During the past two decades, wages of skilled workers in the United States rose while those of unskilled workers fell; less-educated young men in particular have suffered unprecedented losses in real earnings. These twelve original essays explore whether this trend is unique to the United States or is part of a general growth in inequality in advanced countries. Focusing on labor market institutions and the supply and demand forces that affect wages, the papers compare patterns of earnings inequality and pay differentials in the United States, Australia, Korea, Japan, Western Europe, and the changing economies of Eastern Europe. Cross-country studies examine issues such as managerial compensation, gender differences in earnings, and the relationship of pay to regional unemployment. From this rich store of data, the contributors attribute changes in relative wages and unemployment among countries both to differences in labor market institutions and training and education systems, and to long-term shifts in supply and demand for skilled workers. These shifts are driven in part by skill-biased technological change and the growing internationalization of advanced industrial economies.

Suggested Citation

  • Freeman, Richard B. & Katz, Lawrence F. (ed.), 1995. "Differences and Changes in Wage Structures," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226261607.
  • Handle: RePEc:ucp:bknber:9780226261607
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    Citations

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    Cited by:

    1. Andréasson, Hannes, 2014. "The effect of decentralized wage bargaining on the structure of wages and firm performance," Ratio Working Papers 241, The Ratio Institute.
    2. Jennifer Hunt, 1998. "Hours Reductions as Work-Sharing," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, pages 339-381.
    3. Olivier Blanchard & Lawrence F. Katz, 1997. "What We Know and Do Not Know about the Natural Rate of Unemployment," Journal of Economic Perspectives, American Economic Association, pages 51-72.
    4. Davis, Steven J. & Henrekson, Magnus, 2005. "Wage-setting institutions as industrial policy," Labour Economics, Elsevier, vol. 12(3), pages 345-377, June.
    5. Josef Fersterer & Jörn-Steffen Pischke & Rudolf Winter-Ebmer, 2008. "Returns to Apprenticeship Training in Austria: Evidence from Failed Firms," Scandinavian Journal of Economics, Wiley Blackwell, pages 733-753.
    6. Thomas E. Lambert & Edward Kwon, 2015. "The Top One Percent and Exploitation Measures," Review of Radical Political Economics, Union for Radical Political Economics, vol. 47(3), pages 465-476, September.
    7. Susan Hayter & Bradley Weinberg, 2011. "Mind the Gap: Collective Bargaining and Wage Inequality," Chapters,in: The Role of Collective Bargaining in the Global Economy, chapter 6 Edward Elgar Publishing.
    8. Jorge Calero, 2003. "Exploring the Long Term Effects of Educational Policies on the Income Redistribution Processes," LIS Working papers 361, LIS Cross-National Data Center in Luxembourg.
    9. Lemieux, Thomas, 2008. "L’évolution des inégalités dans les pays industrialisés : le point sur la situation," L'Actualité Economique, Société Canadienne de Science Economique, vol. 84(3), pages 241-262, septembre.
    10. David Jesuit & Douglas Roscoe & Vincent Mahler, 1997. "Exploring the Impact of Trade and Investment on Income Inequality: A Cross-National Sectoral Analysis of the Developed Market Economy Countries," LIS Working papers 159, LIS Cross-National Data Center in Luxembourg.
    11. Eriksson, Tor & Jantti, Markus, 1997. "The distribution of earnings in Finland 1971-1990," European Economic Review, Elsevier, vol. 41(9), pages 1763-1779, December.
    12. Peter Kuhn (McMaster), "undated". "Labour Market Polarization: Canada in International Perspective," Canadian International Labour Network Working Papers 02, McMaster University.
    13. Per-Anders Edin & Robert Topel, 1997. "Wage Policy and Restructuring: The Swedish Labor Market since 1960," NBER Chapters,in: The Welfare State in Transition: Reforming the Swedish Model, pages 155-202 National Bureau of Economic Research, Inc.
    14. Pablo Beramendi, 2001. "The Politics of Income Inequality in the OECD: The Role of Second Order Effects," LIS Working papers 284, LIS Cross-National Data Center in Luxembourg.
    15. Xiaoping Chen, 2016. "Skill Distributions, Effective Endowment and Trade," Economic Growth Centre Working Paper Series 1603, Nanyang Technological University, School of Social Sciences, Economic Growth Centre.
    16. Marco Manacorda, 2004. "Can the Scala Mobile Explain the Fall and Rise of Earnings Inequality in Italy? A Semiparametric Analysis, 19771993," Journal of Labor Economics, University of Chicago Press, vol. 22(3), pages 585-614, July.
    17. Susan Hayter, 2015. "Unions and collective bargaining," Chapters,in: Labour Markets, Institutions and Inequality, chapter 4, pages 95-122 Edward Elgar Publishing.
    18. Timothy Moran, 2005. "Bootstrapping the LIS: Statistical Inference and Patterns of Inequality in the Global North," LIS Working papers 378, LIS Cross-National Data Center in Luxembourg.
    19. Uwe Jirjahn, 2014. "Works Councils and Collective Bargaining in Germany: A Simple but Crucial Theoretical Extension," Research Papers in Economics 2014-13, University of Trier, Department of Economics.
    20. Lane Kenworthy & Jonas Pontusson, 2005. "Rising Inequality and the Politics of Redistribution in Affluent Countries," LIS Working papers 400, LIS Cross-National Data Center in Luxembourg.
    21. Joel Rogers & Wolfgang Streeck, 1995. "The Study of Works Councils: Concepts and Problems," NBER Chapters,in: Works Councils: Consultation, Representation, and Cooperation in Industrial Relations, pages 3-26 National Bureau of Economic Research, Inc.
    22. Manuel Alejandro HIDALGO PEREZ, "undated". "Analysis of Education Wage Premium in Spain," Regional and Urban Modeling 284100020, EcoMod.
    23. Freeman, Richard B., 1998. "War of the models: Which labour market institutions for the 21st century?1," Labour Economics, Elsevier, vol. 5(1), pages 1-24, March.
    24. Anna Christina D'Addio, 2007. "Intergenerational Transmission of Disadvantage: Mobility or Immobility Across Generations?," OECD Social, Employment and Migration Working Papers 52, OECD Publishing.

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