Wage differentials across sectors in Europe: an east-west comparison

Iga Magda, Francois Rycx, Ilan Tojerow and Daphné Valsamis

No 09-003.RS, Working Papers CEB from ULB -- Universite Libre de Bruxelles

Abstract: This study compares the structure and determinants of inter-industry wage differentials in Eastern and Western European countries (namely Belgium, Italy, the Netherlands, Norway, Portugal and Spain compared with Latvia, Lithuania, the Czech Republic, Poland and Slovakia). To do so, we use a unique harmonised, linked employer–employee data set, the 2002 European Structure of Earnings Survey. Findings show substantial differences in earnings across sectors in all countries, even when controlling for a wide range of employee, job and employer characteristics. The hierarchy of sectors in terms of wages appears to be quite similar in Eastern and Western European countries. Among high-wage sectors, we find the energy (coke, petroleum, gas, electricity and nuclear power), chemical, financial and computer industries. In contrast, it is in the traditional sectors (wood and cork industry, textile, clothing and leather industry, hotels and restaurants, and retailing) that wages are lowest. Further results suggest that the dispersion of inter-industry wage differentials fluctuates considerably across countries. It is relatively small in Norway and Belgium, large in the Netherlands, Italy, Spain, Poland and the Czech Republic, and very large in Portugal, Latvia, Lithuania and Slovakia. Our findings support the hypothesis of a negative relationship between the dispersion of inter-industry wage differentials and a country’s degree of corporatism.

Keywords: Inter-industry wage differentials; Collective bargaining; Europe; Matched employer-employee data. (search for similar items in EconPapers)
JEL-codes: J31 J51 (search for similar items in EconPapers)
Pages: 24 p.
Date: 2009
New Economics Papers: this item is included in nep-bec, nep-eec, nep-lab and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Working Paper: Wage differentials across sectors in Europe: An east-west comparison (2011)
Working Paper: Wage differentials across sectors in Europe: an east-west comparison (2008)
Working Paper: Wage Differentials across Sectors in Europe: An East-West Comparison (2008)
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