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Earnings Distributions and Dimensions of Inequality

Author

Listed:
  • Neil Foster-McGregor

    () (The Vienna Institute for International Economic Studies, wiiw)

  • Sandra M. Leitner

    () (The Vienna Institute for International Economic Studies, wiiw)

  • Sebastian Leitner

    () (The Vienna Institute for International Economic Studies, wiiw)

  • Johannes Pöschl
  • Robert Stehrer

    () (The Vienna Institute for International Economic Studies, wiiw)

Abstract

An Analysis Based on the European Union Structure of Earnings Survey (SES) This study provides an in-depth evaluation of earnings differences within and across countries and their evolution over time using three different waves of the Structure of Earnings Survey (SES) – for 2002, 2006 and 2010. Earnings inequalities for the EU stayed roughly constant at a Gini coefficient around 0.3 with, however, large and persistent differences being observed across countries. The crisis had no significant impact on changes in earnings inequalities of those people remaining employed. The report highlights the impacts of individual, job and firm characteristics on earnings differences applying Mincer regressions and provides information to which extent these determinants contribute to the observed earnings inequalities using a Shapley value decomposition approach Differences in earnings by occupation and education are the two most important determinants of wage inequality contributing with about 25% and 12%, respectively, followed by industry (with about 10%), enterprise size (about 6%), job duration (6%), age (5%) and gender (3.5%).

Suggested Citation

  • Neil Foster-McGregor & Sandra M. Leitner & Sebastian Leitner & Johannes Pöschl & Robert Stehrer, 2014. "Earnings Distributions and Dimensions of Inequality," wiiw Research Reports 399, The Vienna Institute for International Economic Studies, wiiw.
  • Handle: RePEc:wii:rpaper:rr:399
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    earnings inequalities; Mincer regressions; Shapley decomposition;

    JEL classification:

    • C69 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Other
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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