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

Kjell G Salvanes, Simon Burgess () and Julia Lane

Working Papers from Norwegian School of Economics and Business Administration-

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.

Keywords: BUSINESS ORGANIZATION; PRODUCTION; INCOME (search for similar items in EconPapers)
JEL-codes: D24 (search for similar items in EconPapers)
Pages: 33 pages
Date: 1998
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Citations: View citations in EconPapers (9)

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Chapter: Sources of Earnings Dispersion in a Linked Employer-Employee Data Set: Evidence from Norway (1999)
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Persistent link: https://EconPapers.repec.org/RePEc:fth:norgee:22/98

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