Educational Qualifications and Wage Inequality: Evidence for Europe
This paper explores the connection between education and wage inequality in nine European countries. We exploit the quantile regression technique to calculate returns to lower secondary, upper secondary and tertiary education at different points of the wage distribution. We find that in most countries returns to tertiary education are highly increasing when moving from the lower to the upper quantiles. This finding suggests that an educational expansion towards tertiary education is expected to increase overall within-groups inequality in Europe. In turn, returns to secondary education are quite homogeneous across quantiles, suggesting that an educational expansion towards secondary education is expected to have only a limited impact on within-groups dispersion. Using data from the last decades, we describe changes in the conditional wage distribution of the surveyed countries. A common feature in Europe is that over the last years wage dispersion increased within the high educated.
|Date of creation:||2005|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Giorgio Brunello, 2007.
"The Effects of Cohort Size on European Earnings,"
"Marco Fanno" Working Papers
0036, Dipartimento di Scienze Economiche "Marco Fanno".
- José A. F. Machado & José Mata, 2001.
"Earning functions in Portugal 1982-1994: Evidence from quantile regressions,"
Springer, vol. 26(1), pages 115-134.
- José Ferreira Machado & José Mata, 1998. "Earning Functions in Portugal 1982-1994: Evidence From Quantile Regressions," Working Papers w199802, Banco de Portugal, Economics and Research Department.
- Daron Acemoglu, 2003.
"Cross-Country Inequality Trends,"
Royal Economic Society, vol. 113(485), pages F121-F149, February.
- Eswar Prasad, 2000.
"The Unbearable Stability of the German Wage Structure; Evidence and Interpretation,"
IMF Working Papers
00/22, International Monetary Fund.
- Eswar S. Prasad, 2004. "The Unbearable Stability of the German Wage Structure: Evidence and Interpretation," IMF Staff Papers, Palgrave Macmillan, vol. 51(2), pages 354-385.
- Peter Dolton, 2001.
"Over education in the graduate labour market: Some evidence from alumni data,"
CEE Discussion Papers
0009, Centre for the Economics of Education, LSE.
- Peter Dolton & Mary Silles, 2001. "Over education in the graduate labour market: some evidence from alumni data," LSE Research Online Documents on Economics 19546, London School of Economics and Political Science, LSE Library.
- Telhado Pereira, Pedro & Silva Martins, Pedro, 2002.
"Is there a return-risk link in education?,"
Elsevier, vol. 75(1), pages 31-37, March.
- Buchinsky, Moshe, 1994. "Changes in the U.S. Wage Structure 1963-1987: Application of Quantile Regression," Econometrica, Econometric Society, vol. 62(2), pages 405-58, March.
- Hartog, Joop, 2000. "Over-education and earnings: where are we, where should we go?," Economics of Education Review, Elsevier, vol. 19(2), pages 131-147, April.
- Sanders Mark & Weel Bas ter, 2000.
"Skill-Biased Technical Change: Theoretical Concepts, Empirical Problems and a Survey of the Evidence,"
012, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
- Mark Sanders & Bas ter Weel, 2000. "Skill-Biased Technical Change Theoretical Concepts, Empirical Problems and a Survey of the Evidence," DRUID Working Papers 00-8, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
- A Gosling & Stephen Machin, 1995.
"The Changing Distribution of Male Wages in the UK,"
CEP Discussion Papers
dp0271, Centre for Economic Performance, LSE.
- Gosling, Amanda & Machin, Stephen & Meghir, Costas, 2000. "The Changing Distribution of Male Wages in the U.K," Review of Economic Studies, Wiley Blackwell, vol. 67(4), pages 635-66, October.
- José Mata & José A. F. Machado, 2005. "Counterfactual decomposition of changes in wage distributions using quantile regression," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(4), pages 445-465.
- Pereira, Pedro T. & Martins, Pedro S., 2000.
"Does Education Reduce Wage Inequality? Quantile Regressions Evidence from Fifteen European Countries,"
IZA Discussion Papers
120, Institute for the Study of Labor (IZA).
- Pereira, Pedro Telhado & Martins, Pedro Silva, 2000. "Does Education Reduce Wage Inequality? Quantile Regressions Evidence from Fifteen European Countries," FEUNL Working Paper Series wp379, Universidade Nova de Lisboa, Faculdade de Economia.
- Pereira, Pedro Telhado & Martins, Pedro Silva, 2002. "Does Education Reduce Wage Inequality? Quantile Regressions Evidence from Fifteen European Countries," Discussion Papers 709, The Research Institute of the Finnish Economy.
- Machin, Stephen, 1997. "The decline of labour market institutions and the rise in wage inequality in Britain," European Economic Review, Elsevier, vol. 41(3-5), pages 647-657, April.
- Barro, Robert J, 2000. " Inequality and Growth in a Panel of Countries," Journal of Economic Growth, Springer, vol. 5(1), pages 5-32, March.
- Alberto Abadie, 1997.
"Changes in Spanish labor income structure during the 1980's: a quantile regression aproach,"
Fundación SEPI, vol. 21(2), pages 253-272, May.
- Abadie,A., 1995. "Changes in Spanish Labor Income Structure During the 1980's:a Quantile Regression Approach," Papers 9521, Centro de Estudios Monetarios Y Financieros-.
- Joop Hartog & Pedro Pereira & Jose Vieira, 2001. "Changing returns to education in Portugal during the 1980s and early 1990s: OLS and quantile regression estimators," Applied Economics, Taylor & Francis Journals, vol. 33(8), pages 1021-1037.
- David H. Autor & Lawrence F. Katz & Melissa S. Kearney, 2005.
"Trends in U. S. Wage Inequality: Re-Assessing the Revisionists,"
Harvard Institute of Economic Research Working Papers
2095, Harvard - Institute of Economic Research.
- David H. Autor & Lawrence F. Katz & Melissa S. Kearney, 2005. "Trends in U.S. Wage Inequality: Re-Assessing the Revisionists," NBER Working Papers 11627, National Bureau of Economic Research, Inc.
- Tom Clark & Jayne Taylor, 1999. "Income inequality: a tale of two cycles?," Fiscal Studies, Institute for Fiscal Studies, vol. 20(4), pages 387-408, December.
- Colm Harmon & Vincent Hogan & Ian Walker, 2001.
"Dispersion in the Economic Return to Schooling,"
200116, School of Economics, University College Dublin.
- De Gregorio, Jose & Lee, Jong-Wha, 2002. "Education and Income Inequality: New Evidence from Cross-Country Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 48(3), pages 395-416, September.
- Fersterer, Josef & Winter-Ebmer, Rudolf, 1999.
"Are Austrian Returns to Education Falling Over Time?,"
CEPR Discussion Papers
2313, C.E.P.R. Discussion Papers.
- Fersterer, Josef & Winter-Ebmer, Rudolf, 2003. "Are Austrian returns to education falling over time?," Labour Economics, Elsevier, vol. 10(1), pages 73-89, February.
- Fersterer, Josef & Winter-Ebmer, Rudolf, 1999. "Are Austrian Returns to Education Falling Over Time?," IZA Discussion Papers 72, Institute for the Study of Labor (IZA).
- Vieira, Jose A. C., 1999. "Returns to education in Portugal," Labour Economics, Elsevier, vol. 6(4), pages 535-541, November.
- Cholezas, Ioannis & Tsakloglou, Panos, 2007. "Earnings Inequality in Europe: Structure and Patterns of Inter-Temporal Changes," IZA Discussion Papers 2636, Institute for the Study of Labor (IZA).
- 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.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:91. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.