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BrExit or BritaIn: Is the UK more Attractive to Supervisors? An Analysis of Wage Premium to Supervision across the EU

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  • Biagetti, Marco
  • Giangreco, Antonio
  • Leonida, Leone
  • Scicchitano, Sergio

Abstract

We define the wage premium to supervision (WPS) as the extra wage that supervisors earn relative to their subordinates, and estimate it at different quantiles of wage distribution for 26 European economies, comparatively focusing on the UK. We find that, by compensating supervisory positions according to the wage, the WPS increases wage inequality across most of the economies studied. Further, over 10% of the WPS depends upon the economic context. Our results suggest that, regarding the WPS, the UK is more rewarding than the other economies. We discuss implications for immigration and policymakers in relation to the post-Brexit process.

Suggested Citation

  • Biagetti, Marco & Giangreco, Antonio & Leonida, Leone & Scicchitano, Sergio, 2020. "BrExit or BritaIn: Is the UK more Attractive to Supervisors? An Analysis of Wage Premium to Supervision across the EU," GLO Discussion Paper Series 510, Global Labor Organization (GLO).
    • Handle: RePEc:zbw:glodps:510
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    Keywords

    Wage premium to supervision; Counterfactual density estimation; Role of economic context; Talent attraction; Brexit;
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