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Inter-industry wage differentials in EU countries: what do cross-country time varying data add to the picture?

Philip Du Caju, Gábor Kátay, Ana Lamo, Daphne Nicolitsas and Steven Poelhekke

No 121, Working Papers from Bank of Greece

Abstract: This paper documents the existence and main patterns of inter-industry wage differentials across a large number of industries for 8 EU countries at two points in time and explores possible explanations for these. The analysis uses the European Structure of Earnings Survey (SES), an internationally harmonised matched employer-employee dataset, to estimate inter-industry wage differentials conditional on a set of employee, employer and job characteristics. After investigating the possibility that unobservable employee characteristics lie behind the conditional wage differentials, a hypothesis which cannot be accepted, the paper investigates the role of institutional, industry structure and performance characteristics in explaining inter-industry wage differentials. The results suggest that inter-industry wage differentials are consistent with rent sharing mechanisms and that rent sharing is more likely in industries with firm-level collective agreements and with higher collective agreement coverage.

Keywords: inter-industry wage differentials; rent sharing; unobserved ability (search for similar items in EconPapers)
JEL-codes: J31 J41 J51 (search for similar items in EconPapers)
Pages: 42
Date: 2010-12
New Economics Papers: this item is included in nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (68)

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Related works:
Journal Article: Inter-Industry Wage Differentials In EU Countries: What Do Cross-Country Time Varying Data Add to the Picture? (2010) Downloads
Working Paper: Inter-industry wage differentials in EU countries: what do cross-country time varying data add to the picture? (2010) Downloads
Working Paper: Inter-industry wage differentials in EU countries: what do cross-country time varying data add to the picture? (2010) Downloads
Working Paper: Inter-industry wage differentials in EU countries: What do cross-country time-varying data add to the picture ? (2010) Downloads
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