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Wage Inequality between and within Education Levels in Transition Countries

In: Inequalities During and After Transition in Central and Eastern Europe

Author

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  • Cristiano Perugini
  • Fabrizio Pompei

Abstract

Earnings inequality between education and skill cohorts in Europe has traditionally been one of the main focuses of theoretical and applied research. The skill-biased technical change (SBTC) theory in particular traces the origin of the skill premia for highly educated workers in a race between education and technology — whose winner is a technology that complements higher education and skills (Goldin and Katz, 2008). But relatively little effort has been made to analysing the size of within-group disparities and their drivers. However, especially under certain structural and institutional conditions which may favour income polarisation and the persistence of low-pay traps, this particular dimension of inequality may be relevant.

Suggested Citation

  • Cristiano Perugini & Fabrizio Pompei, 2015. "Wage Inequality between and within Education Levels in Transition Countries," Studies in Economic Transition, in: Cristiano Perugini & Fabrizio Pompei (ed.), Inequalities During and After Transition in Central and Eastern Europe, chapter 7, pages 170-197, Palgrave Macmillan.
    • Handle: RePEc:pal:stuchp:978-1-137-46098-1_8
    DOI: 10.1057/9781137460981_8
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