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Sources of Earnings Dispersion in a Linked Employer-Employee Data Set: Evidence from Norway

In: The Creation and Analysis of Employer-Employee Matched Data

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  • Kjell G. Salvanes
  • Julia Lane
  • Simon Burgess

Abstract

We estimate a standard human capital earnings model, augmented to allow for different firm-specific wage premia. The earnings of an individual depend on her human capital bundle and the earnings mark-up of the firm she is currently working for. We use linked employer-employee data from Norway which allows us to directly estimate the skill premium as a function of firm specific variables such as plant size, the capital/labour ratio, market share, unionisation and openness to trade. We document the impact of job reallocation and skill sorting on earnings dispersion. We find a large potential effect of labour reallocation on earnings dispersion.
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Suggested Citation

  • Kjell G. Salvanes & Julia Lane & Simon Burgess, 1999. "Sources of Earnings Dispersion in a Linked Employer-Employee Data Set: Evidence from Norway," Contributions to Economic Analysis, in: The Creation and Analysis of Employer-Employee Matched Data, pages 261-284, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:ceazzz:s0573-8555(1999)0000241012
    DOI: 10.1108/S0573-8555(1999)0000241012
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    Cited by:

    1. Kare Johansen & Kristen Ringdal & Thortle Thøring, 2001. "Firm profitability, regional unemployment and human capital in wage determination," Applied Economics, Taylor & Francis Journals, vol. 33(1), pages 113-121.
    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. Philip Du Caju & François Rycx & Ilan Tojerow, 2011. "Wage structure effects of international trade: Evidence from a small open economy," Working Paper Research 214, National Bank of Belgium.
    4. Nannan Lundin & Lihong Yun, 2009. "International Trade and Inter‐Industry Wage Structure in Swedish Manufacturing: Evidence from Matched Employer–Employee Data," Review of International Economics, Wiley Blackwell, vol. 17(1), pages 87-102, February.
    5. Benoit Dostie & Mohsen Javdani, 2020. "Not for the Profit, But for the Training? Gender Differences in Training in the For‐Profit and Non‐Profit Sectors," British Journal of Industrial Relations, London School of Economics, vol. 58(3), pages 644-689, September.
    6. Meng, Xin, 2004. "Gender earnings gap: the role of firm specific effects," Labour Economics, Elsevier, vol. 11(5), pages 555-573, October.

    More about this item

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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