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Wage differentials across sectors in Europe: An east-west comparison

Author

Listed:
  • Iga Magda
  • François Rycx
  • Ilan Tojerow
  • Daphné Valsamis

Abstract

Using a unique harmonized linked employer–employee dataset, this paper analyses the structure and determinants of inter-industry wage differentials in Central and Eastern European countries (Czech Republic, Latvia, Lithuania and Poland) and compares them to those observed in Western European states. Findings show substantial differences in earnings across sectors in all countries, even when controlling for a wide range of employee, job and employer characteristics. The hierarchy of sectors in terms of wages appears to be quite similar in Eastern and Western European countries, although the former tend to have higher levels of dispersion of inter-industry wage differentials.

Suggested Citation

  • Iga Magda & François Rycx & Ilan Tojerow & Daphné Valsamis, 2011. "Wage differentials across sectors in Europe: An east-west comparison," ULB Institutional Repository 2013/138897, ULB -- Universite Libre de Bruxelles.
    • Handle: RePEc:ulb:ulbeco:2013/138897
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    Cited by:

    1. Philip Du Caju & François Rycx & Ilan Tojerow, 2011. "Inter‐Industry Wage Differentials: How Much Does Rent Sharing Matter?," Manchester School, University of Manchester, vol. 79(4), pages 691-717, July.
    2. Philip Du Caju & François Rycx & Ilan Tojerow, 2012. "Wage structure effects of international trade in a small open economy: the case of Belgium," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 148(2), pages 297-331, June.
    3. Lis, Maciej & Magda, Iga, . "Dynamika płac w cyklu życia a indywidualny stan zdrowia," Gospodarka Narodowa-The Polish Journal of Economics, Szkoła Główna Handlowa w Warszawie / SGH Warsaw School of Economics, vol. 2014(4).
    4. Aleksandra Parteka & Joanna Wolszczak-Derlacz, 2015. "Integrated sectors - diversified earnings: the (missing) impact of offshoring on wages and wage convergence in the EU27," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 13(3), pages 325-350, September.
    5. Philip Du Caju & Gábor Kátay & Ana Lamo & Daphne Nicolitsas & Steven Poelhekke, 2010. "Inter-Industry Wage Differentials In EU Countries: What Do Cross-Country Time Varying Data Add to the Picture?," Journal of the European Economic Association, MIT Press, vol. 8(2-3), pages 478-486, 04-05.
    6. Ferreira, Priscila, 2009. "The sources of interindustry wage differentials," ISER Working Paper Series 2009-13, Institute for Social and Economic Research.
    7. Evangelia Papapetrou & Pinelopi Tsalaporta, 2017. "Inter-Industry Wage Differentials in Greece: Evidence from Quantile Regression Analysis," International Economic Journal, Taylor & Francis Journals, vol. 31(1), pages 51-67, January.
    8. Jan Drahokoupil & Agnieszka Piasna, 2018. "What is behind low wages in central and eastern Europe?," Post-Communist Economies, Taylor & Francis Journals, vol. 30(4), pages 421-439, July.
    9. Bernal, Oscar & Oosterlinck, Kim & Szafarz, Ariane, 2010. "Observing bailout expectations during a total eclipse of the sun," Journal of International Money and Finance, Elsevier, vol. 29(7), pages 1193-1205, November.
    10. Du Caju, Philip & Rycx, François & Tojerow, Ilan, 2008. "Rent-Sharing and the Cyclicality of Wage Differentials," IZA Discussion Papers 3844, Institute of Labor Economics (IZA).
    11. Charles Plaigin, 2009. "Exploratory study on the presence of cultural and institutional growth spillovers," DULBEA Working Papers 09-03.RS, ULB -- Universite Libre de Bruxelles.
    12. Oliver Denk & Sebastian Schich & Boris Cournède, 2015. "Why implicit bank debt guarantees matter: Some empirical evidence," OECD Journal: Financial Market Trends, OECD Publishing, vol. 2014(2), pages 63-88.
    13. Evangelia Papapetrou & Pinelopi Tsalaporta, 2016. "Inter-industry wage differentials in Greece: rent-sharing and unobserved heterogeneity hypotheses," Working Papers 213, Bank of Greece.
    14. Pierre-Guillaume Méon & Ariane Szafarz, 2008. "Labour market discrimination as an agency cost," Working Papers CEB 08-019.RS, ULB -- Universite Libre de Bruxelles.
    15. Rebekka Christopoulou & Theodora Kosma, 2009. "Skills and Wage Inequality in Greece: Evidence from Matched Employer-Employee Data, 1995-2002," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 26, Hellenic Observatory, LSE.
    16. Maciej Lis & Iga Magda, 2014. "Dynamika płac w cyklu życia a indywidualny stan zdrowia," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 4, pages 121-142.
    17. Leon Bettendorf & Kees Folmer & Egbert Jongen, 2013. "The dog that did not bark: The EITC for single mothers in the Netherlands," CPB Discussion Paper 229.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    18. François Rycx & Stephan Kampelmann, 2013. "Who Earns Minimum Wages in Europe? New Evidence Based on Household Surveys," DULBEA Working Papers 13-01, ULB -- Universite Libre de Bruxelles.
    19. Oliver Denk, 2015. "Financial sector pay and labour income inequality: Evidence from Europe," OECD Economics Department Working Papers 1225, OECD Publishing.
    20. Ilan Tojerow, 2008. "Industry Wage Differentials Rent Sharing and Gender in Belgium," Reflets et perspectives de la vie économique, De Boeck Université, vol. 0(3), pages 55-65.
    21. Nuno Crespo & Nádia Simões & José Castro Pinto, 2013. "Determinant factors of job quality in Europe," Working Papers Series 2 13-01, ISCTE-IUL, Business Research Unit (BRU-IUL).
    22. Mihnenoka Aleksandra & Senfelde Maija, 2017. "the impact of national economy structural transformation on regional employment and income: the case of Latvia," South East European Journal of Economics and Business, Sciendo, vol. 12(2), pages 47-60, December.
    23. Dorota Witkowska & Aleksandra Matuszewska-Janica & Grzegorz Mentel, 2019. "Determinants of remuneration in selected European Union states," Collegium of Economic Analysis Annals, Warsaw School of Economics, Collegium of Economic Analysis, issue 55, pages 9-24.

    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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