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Sources of Earnings Dispersion in a Linked Employer-Employee Dataset: Evidence from Norway

Author

Listed:
  • Salvanes, K.G.
  • Burgess, S.
  • Lane, J.

Abstract

We estimate a standard human capital earnings model, augmented to allow for different firm-specific wage premia. The earnings of an individual depend on her human capital bundle and the earnings mark-up of the firm she is currently working for. We use linked employer-employee data from Norway which allows us to directly estimate the skill premium as a function of firm specific variables such as plant size, the capital/labour ratio, market share, unionisation and openness to trade. We document the impact of job reallocation and skill sorting on earnings dispersion. We find a large potential effect of labour reallocation on earnings dispersion.

Suggested Citation

  • Salvanes, K.G. & Burgess, S. & Lane, J., 1998. "Sources of Earnings Dispersion in a Linked Employer-Employee Dataset: Evidence from Norway," Papers 22/98, Norwegian School of Economics and Business Administration-.
  • Handle: RePEc:fth:norgee:22/98
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    Citations

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    Cited by:

    1. Kare Johansen & Kristen Ringdal & Thortle Thøring, 2001. "Firm profitability, regional unemployment and human capital in wage determination," Applied Economics, Taylor & Francis Journals, vol. 33(1), pages 113-121.
    2. Du Caju, Philip & Rycx, François & Tojerow, Ilan, 2011. "Wage structure effects of international trade: evidence from a small open economy," Working Paper Series 1325, European Central Bank.
    3. Nannan Lundin & Lihong Yun, 2009. "International Trade and Inter-Industry Wage Structure in Swedish Manufacturing: Evidence from Matched Employer-Employee Data," Review of International Economics, Wiley Blackwell, vol. 17(1), pages 87-102, February.
    4. Meng, Xin, 2004. "Gender earnings gap: the role of firm specific effects," Labour Economics, Elsevier, vol. 11(5), pages 555-573, October.

    More about this item

    Keywords

    BUSINESS ORGANIZATION ; PRODUCTION ; INCOME;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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