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Less Income Inequality and More Growth – Are they Compatible? Part 7. The Drivers of Labour Earnings Inequality – An Analysis Based on Conditional and Unconditional Quantile Regressions

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  • Jean-Marc Fournier

    (OECD)

  • Isabell Koske

    (OECD)

Abstract

Unconditional and conditional quantile regressions are used to explore the determinants of labour earnings at different parts of the distribution and, hence, the determinants of overall labour earnings inequality. The analysis combines several household surveys to provide comparable estimates for 32 countries. The empirical work suggests that, in general, a rise in the share of workers with an upper-secondary or post-secondary non-tertiary degree, a rise in trade union membership, a rise in the share of public employment and a rise in the share of workers on permanent contracts are associated with a narrowing of the earnings distribution. By contrast, a shift in the sector composition of the economy is not found to have a large impact on overall earnings inequality. As for tertiary education, the impact remains ambiguous as there are several offsetting forces. Moins d'inégalités de revenu et plus de croissance – Ces deux objectifs sont-ils compatibles?:Partie 7. Les facteurs des inégalités de revenu – analyse fondée sur des régressions quantiles conditionnelles et inconditionnelles On utilise les regressions quantiles conditionnelles et inconditionnelles pour etudier les determinants des revenus du travail le long de la distribution et, par voie de consequence, les determinants des inegalites de revenus du travail. Cette analyse regroupe plusieurs enquetes menees aupres des menages afin de produire des estimations comparables pour 32 pays. Les travaux econometriques suggerent qu.en general, l.augmentation de la part des travailleurs titulaires d.un diplome du deuxieme cycle de l.enseignement secondaire ou post-secondaire, non universitaire, la montee de l.adhesion syndicale, le gonflement de la part de l.emploi public et la hausse de la part des travailleurs sous contrat a duree indeterminee ont pour corollaire un resserrement de la repartition des revenus. En revanche, selon les conclusions de l.etude, l.evolution de la composition sectorielle de l.economie n.a pas d.impact important sur les inegalites globales de revenu. Pour ce qui est de l.enseignement superieur, l.impact n.est pas net car plusieurs effets jouent dans des directions opposees.

Suggested Citation

  • Jean-Marc Fournier & Isabell Koske, 2012. "Less Income Inequality and More Growth – Are they Compatible? Part 7. The Drivers of Labour Earnings Inequality – An Analysis Based on Conditional and Unconditional Quantile Regressions," OECD Economics Department Working Papers 930, OECD Publishing.
    • Handle: RePEc:oec:ecoaaa:930-en
    DOI: 10.1787/5k9h28s354hg-en
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    References listed on IDEAS

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    More about this item

    Keywords

    adhésion syndicale; contrats à durée déterminée; education; emploi public; income inequality; inégalité des revenus; labour income; public employment; quantile regression; revenus du travail; régression quantile; temporary work contract; union membership; éducation;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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