IDEAS home Printed from https://ideas.repec.org/p/irs/iriswp/2007-11.html

Income Inequality and Education Premia

Author

Listed:
  • LILLA Marco

Abstract

The paper attempts to measure income inequality and its changes over the period 1993-2000 for a set of 13 Countries in ECHP. Focusing on wages and incomes of workers in general, inequality is mainly analyzed with respect to educational levels as proxy of individual abilities. Estimation of education premia is performed by quantile regressions to stress differences in income distribution and questioning the true impact of education. The same estimates are used to decompose income inequality and show the rise in residual inequality.

Suggested Citation

  • LILLA Marco, 2007. "Income Inequality and Education Premia," IRISS Working Paper Series 2007-11, IRISS at CEPS/INSTEAD.
    • Handle: RePEc:irs:iriswp:2007-11
    as

    Download full text from publisher

    File URL: https://liser.elsevierpure.com/en/publications/income-inequality-and-education-premia
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. KATRNAK Tomas & KRIZOVA Iva & VALENTOVA Marie, 2007. "Occupational Gender Segregation in the light of the Segregation in Education: A Cross-National Comparison," IRISS Working Paper Series 2007-04, IRISS at CEPS/INSTEAD.
    2. DiNardo, John & Fortin, Nicole M & Lemieux, Thomas, 1996. "Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach," Econometrica, Econometric Society, vol. 64(5), pages 1001-1044, September.
    3. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
    4. Murphy, Kevin M & Welch, Finis, 1993. "Inequality and Relative Wages," American Economic Review, American Economic Association, vol. 83(2), pages 104-109, May.
    5. Aghion, Philippe & Howitt, Peter & Violante, Giovanni L, 2002. "General Purpose Technology and Wage Inequality," Journal of Economic Growth, Springer, vol. 7(4), pages 315-345, December.
    6. STANCIOLE Anderson, 2007. "Health Insurance and Life Style Choices: Identifying the Ex Ante Moral Hazard," IRISS Working Paper Series 2007-10, IRISS at CEPS/INSTEAD.
    7. VAN KERM Philippe, 2007. "Extreme incomes and the estimation of poverty and inequality indicators from EU-SILC," IRISS Working Paper Series 2007-01, IRISS at CEPS/INSTEAD.
    8. Wood Júnior, Thomaz, 1995. "Workers," RAE - Revista de Administração de Empresas, FGV-EAESP Escola de Administração de Empresas de São Paulo (Brazil), vol. 35(2), March.
    9. MUSSARD Stéphane, 2007. "Between-Group Pigou-Dalton Transfers," IRISS Working Paper Series 2007-02, IRISS at CEPS/INSTEAD.
    10. Adrian Wood, 1997. "How Trade Hurt Unskilled Workers," Palgrave Macmillan Books, in: Jitendralal Borkakoti & Chris Milner (ed.), International Trade and Labour Markets, chapter 7, pages 140-168, Palgrave Macmillan.
    11. Pereira, Pedro T. & Martins, Pedro S., 2000. "Does Education Reduce Wage Inequality? Quantile Regressions Evidence from Fifteen European Countries," IZA Discussion Papers 120, Institute of Labor Economics (IZA).
    12. Lars Ljungqvist & Thomas J. Sargent, 1998. "The European Unemployment Dilemma," Journal of Political Economy, University of Chicago Press, vol. 106(3), pages 514-550, June.
    13. STRAPCOVA Katarina & VOICU Bogdan & VOICU Malina, 2007. "Engendered housework. A cross-european analysis," IRISS Working Paper Series 2007-07, IRISS at CEPS/INSTEAD.
    14. Buchinsky, Moshe, 1994. "Changes in the U.S. Wage Structure 1963-1987: Application of Quantile Regression," Econometrica, Econometric Society, vol. 62(2), pages 405-458, March.
    15. Martins, Pedro S. & Pereira, Pedro T., 2004. "Does education reduce wage inequality? Quantile regression evidence from 16 countries," Labour Economics, Elsevier, vol. 11(3), pages 355-371, June.
    16. Daron Acemoglu, 2002. "Technical Change, Inequality, and the Labor Market," Journal of Economic Literature, American Economic Association, vol. 40(1), pages 7-72, March.
    17. Marco Lilla, 2005. "Disuguaglianze salariali in Italia: nuove evidenze dai microdati SHIW," Politica economica, Società editrice il Mulino, issue 1, pages 71-102.
    18. Moshe Buchinsky, 1998. "Recent Advances in Quantile Regression Models: A Practical Guideline for Empirical Research," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 88-126.
    19. STRAPCOVA Katarina & VOICU Bogdan & VOICU Malina, 2006. "Housework and gender inequality across Europe," IRISS Working Paper Series 2006-11, IRISS at CEPS/INSTEAD.
    20. Claudia Goldin & Lawrence F. Katz, 1999. "The Returns to Skill in the United States across the Twentieth Century," NBER Working Papers 7126, National Bureau of Economic Research, Inc.
    21. VALENTOVA Marie, 2007. "Attitudes to Family Policy Arrangements in Relation to Attitudes to Family and division of Labour between Genders," IRISS Working Paper Series 2007-05, IRISS at CEPS/INSTEAD.
    22. Stéphane Mussard & Michel Terraza, 2009. "Décompositions des mesures d'inégalité : le cas des coefficients de Gini et d'entropie," Recherches économiques de Louvain, De Boeck Université, vol. 75(2), pages 151-181.
    23. SIROVATKA Tomas & VALENTOVA Marie, 2006. "The Legitimacy of Redistribution: the Czech Republic in International Comparison," IRISS Working Paper Series 2006-12, IRISS at CEPS/INSTEAD.
    24. KANKARASH Milosh & MOORS Guy, 2007. "Heterogeneity in solidarity attitudes in Europe. Insights from a multiple-group latent-class factor approach," IRISS Working Paper Series 2007-06, IRISS at CEPS/INSTEAD.
    25. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-442, June.
    26. RAILEANU SZELES Monica, 2007. "The patterns and causes of social exclusion in Luxembourg," IRISS Working Paper Series 2007-09, IRISS at CEPS/INSTEAD.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lorenzo Corsini, 2012. "Institutions, Technological Change and Wage Differentials between Skilled and Unskilled Workers: Theory and Evidence from Europe," Research in Labor Economics, in: Research in Labor Economics, pages 1-33, Emerald Group Publishing Limited.
    2. MARTIN Ludivine, 2007. "The impact of technological changes on incentives and motivations to work hard," IRISS Working Paper Series 2007-15, IRISS at CEPS/INSTEAD.
    3. Prejmerean, Mihaela Cornelia & Vasilache, Simona, 2008. "What's a university worth? Changes in the lifestyle and status of post-2000 European Graduates," IRISS Working Paper Series 2008-05, IRISS at CEPS/INSTEAD.
    4. PREJMEREAN Mihaela Cornelia & VASILACHE Simona, 2008. "What's a univesity worth? Changes in the lifestyle and status of post-2000 European Graduates," IRISS Working Paper Series 05, IRISS at CEPS/INSTEAD.
    5. FOUARGE Didier & MUFFELS Ruud & PAVLOPOULOS Dimitris & VERMUNT Jeroen K., 2007. "Who benefits from a job change: The dwarfs or the giants?," IRISS Working Paper Series 2007-16, IRISS at CEPS/INSTEAD.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marco LILLA, 2008. "Income Inequality and Education from ECHP data," Working Papers 311, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    2. MARTIN Ludivine, 2007. "The impact of technological changes on incentives and motivations to work hard," IRISS Working Paper Series 2007-15, IRISS at CEPS/INSTEAD.
    3. STRAPCOVA Katarina & VOICU Bogdan & VOICU Malina, 2007. "Engendered housework. A cross-european analysis," IRISS Working Paper Series 2007-07, IRISS at CEPS/INSTEAD.
    4. KANKARASH Milosh & MOORS Guy, 2007. "Heterogeneity in solidarity attitudes in Europe. Insights from a multiple-group latent-class factor approach," IRISS Working Paper Series 2007-06, IRISS at CEPS/INSTEAD.
    5. FOUARGE Didier & MUFFELS Ruud & PAVLOPOULOS Dimitris & VERMUNT Jeroen K., 2007. "Who benefits from a job change: The dwarfs or the giants?," IRISS Working Paper Series 2007-16, IRISS at CEPS/INSTEAD.
    6. Marco Biagetti & Sergio Scicchitano, 2011. "Education and wage inequality in Europe," Economics Bulletin, AccessEcon, vol. 31(3), pages 2620-2628.
    7. Paolo Naticchioni & Andrea Ricci & Emiliano Rustichelli, 2007. "Wage Structure, Inequality And Skill-Biased Change: Is Italy An Outlier?," Quaderni del Dipartimento di Economia, Finanza e Statistica 38/2007, Università di Perugia, Dipartimento Economia.
    8. VALENTOVA Marie, 2007. "Attitudes to Family Policy Arrangements in Relation to Attitudes to Family and division of Labour between Genders," IRISS Working Paper Series 2007-05, IRISS at CEPS/INSTEAD.
    9. Marco Biagetti & Sergio Scicchitano, 2012. "Returns to Schooling in Europe: Evidence From Quantile Regression on EU-SILC Data," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 2(5), pages 1-9, October.
    10. Aghion, Philippe & Howitt, Peter & Violante, Giovanni L, 2002. "General Purpose Technology and Wage Inequality," Journal of Economic Growth, Springer, vol. 7(4), pages 315-345, December.
    11. Lorenzo Corsini, 2012. "Institutions, Technological Change and Wage Differentials between Skilled and Unskilled Workers: Theory and Evidence from Europe," Research in Labor Economics, in: Research in Labor Economics, pages 1-33, Emerald Group Publishing Limited.
    12. Aysit Tansel & Fatma Bircan Bodur, 2012. "Wage Inequality and Returns to Education in Turkey: A Quantile Regression Analysis," Review of Development Economics, Wiley Blackwell, vol. 16(1), pages 107-121, February.
    13. Thomschke, Lorenz, 2015. "Changes in the distribution of rental prices in Berlin," Regional Science and Urban Economics, Elsevier, vol. 51(C), pages 88-100.
    14. Zheng Fang & Chris Sakellariou, 2011. "A Case of Sticky Floors: Gender Wage Differentials in Thailand," Asian Economic Journal, East Asian Economic Association, vol. 25(1), pages 35-54, March.
    15. Santiago Budria, 2010. "Schooling and the distribution of wages in the European private and public sectors," Applied Economics, Taylor & Francis Journals, vol. 42(8), pages 1045-1054.
    16. Mary Donegan & Nichola Lowe, 2008. "Inequality in the Creative City: Is There Still a Place for “Old-Fashioned†Institutions?," Economic Development Quarterly, , vol. 22(1), pages 46-62, February.
    17. G. Reza Arabsheibani & Francisco Galrao Carneiro & Andrew Henley, 2006. "Changes in human capital and earnings inequality: Recent evidence from Brazil," Journal of Development Studies, Taylor & Francis Journals, vol. 42(5), pages 837-867.
    18. Santiago Budría & Pedro Telhado-Pereira, 2011. "Educational Qualifications And Wage Inequality: Evidence For Europe," Revista de Economia Aplicada, Universidad de Zaragoza, Departamento de Estructura Economica y Economia Publica, vol. 19(2), pages 5-34, Autumn.
    19. Marco Lilla & Stefano Staffolani, 2009. "The evolution of wage inequality in Italy," Applied Economics, Taylor & Francis Journals, vol. 41(15), pages 1873-1892.
    20. Cho, Sungwook & Heshmati, Almas, 2013. "What If You Had Been Less Fortunate: The Effects of Poor Family Background on Current Labor Market Outcomes," IZA Discussion Papers 7708, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:irs:iriswp:2007-11. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Philippe Van Kerm (email available below). General contact details of provider: https://edirc.repec.org/data/cepsslu.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.