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Understanding inter-industry wage structures in the euro area
- Publication Year :
- 2009
- Publisher :
- Bonn: Institute for the Study of Labor (IZA), 2009.
-
Abstract
- This paper focuses on the euro area wage structure and its potential determinants from a sectoral viewpoint. Merging information from the OECD Structural Analysis database with data from the EU Labour Force Survey, we construct a cross-country panel of 22 industries in 8 euro area countries for 1991-2002. Data inspection confirms the existence of a fairly stable inter-industry wage structure that is similar across countries. We then apply panel data techniques to identify factors explaining inter-industry wage differentials in the euro area. Both workforce characteristics (e.g., human capital variables) and firm-related characteristics (e.g., capital intensity, productivity) contribute significantly. However, considerable wage heterogeneity across sectors remains. Idiosyncratic sector and country specifics, reflecting different socio-cultural and institutional backgrounds, appear to bear a major role. While our empirical analysis only uses direct evidence from workforce and firm-related characteristics, we also try to relate the remaining heterogeneity to institutional characteristics, based on related literature.
- Subjects :
- firm and workforce characteristics
Kapitalintensität
J24
Sektorale Lohnstruktur
Arbeitsmarktflexibilität
inter-industry wage differentials
Humankapital
Europäische Wirtschafts- und Währungsunion
ddc:330
Euro area
Arbeitsmarktflexibilisierung
EU-Staaten
J51
Eurozone
J31
panel estimation
Produktivität
labour market institutions
Subjects
Details
- Language :
- English
- Database :
- OpenAIRE
- Accession number :
- edsair.dedup.wf.001..1b9de6a7e0a4280fbca864d696385717