Does institutional diversity account for pay rules in Germany and Belgium?

Stephan Kampelmann and Francois Rycx

ULB Institutional Repository from ULB -- Universite Libre de Bruxelles

Abstract: This article examines the relationship between institutions and the remuneration of different jobs by comparing the German and Belgian labour markets with respect to a typology of institutions (social representations, norms, conventions, legislation and organizations). The observed institutional differences between the two countries lead to the hypotheses of (I) higher overall pay inequality in Germany; (II) higher pay inequalities between employees and workers in Belgium and (III) higher (lower) impact of educational credentials (work-post tenure) on earnings in Germany. We provide survey-based empirical evidence supporting hypotheses I and III, but find no evidence for hypothesis II. These results underline the importance of institutional details: although Germany and Belgium belong to the same 'variety of capitalism', we provide evidence that small institutional disparities within Continental-European capitalism account for distinct structures of pay. © The Author 2012. Published by Oxford University Press and the Society for the Advancement of Socio-Economics. All rights reserved.

Keywords: Collective bargaining; Labor market institutions; Rules; Wage inequality (search for similar items in EconPapers)
Date: 2013-01
Note: SCOPUS: ar.j
References: Add references at CitEc
Citations: View citations in EconPapers (12)

Published in: Socio-economic review (2013) v.11 n° 1,p.131-157

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: Does institutional diversity account for pay rules in Germany and Belgium? (2011)
Working Paper: Does Institutional Diversity Account for Pay Rules in Germany and Belgium? (2011)
Working Paper: Does institutional diversity account for pay rules in Germany and Belgium? (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ulb:ulbeco:2013/184397

Ordering information: This working paper can be ordered from
http://hdl.handle.ne ... lb.ac.be:2013/184397

Access Statistics for this paper

More papers in ULB Institutional Repository from ULB -- Universite Libre de Bruxelles Contact information at EDIRC.
Bibliographic data for series maintained by Benoit Pauwels ().