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College wage premium over time: trends in Europe in the last 15 years

Elena Crivellaro

No 2014:03, Working Papers from Department of Economics, University of Venice "Ca' Foscari"

Abstract: While there has been intense debate in the empirical literature over the evolution of the college wage premium in the United States, its evolution in Europe has received little attention. This paper investigates the causes of the evolution of the college wage premium in 12 european countries from 1994 to 2009. I use cross country variation in relative supply, demand, and labour market institutions to examine their effects on the trend in wage inequality. I address possible concerns of endogeneity of the relative supply using an IV strategy exploiting the differential legislations of university autonomy and their variations over time. In explaining the evolution of wage inequality, both market and non-market factors matter: an increase in relative supply decreases the college wage premium; the minimum wage also has a sign?cant and negative effect.

Keywords: College wage premium; Inequality; Relative supply. (search for similar items in EconPapers)
JEL-codes: I24 J24 J31 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2014
New Economics Papers: this item is included in nep-lab and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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