English, Article, Journal or magazine article edition: Understanding Inter-Industry Wage Structures in the Euro Area. Véronique Genre; Karsten Kohn; Daphne Momferatou

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Bookmark: http://trove.nla.gov.au/version/211575
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Understanding Inter-Industry Wage Structures in the Euro Area.
Author
  • Véronique Genre
  • Karsten Kohn
  • Daphne Momferatou
Physical Description
  • preprint
Notes
  • 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 sociocultural and institutional backgrounds, appear to bear a major role. While our paper only uses direct evidence from workforce and firm-related characteristics, we also try to relate the remaining heterogeneity to institutional characteristics, based on available relevant literature. JEL Classification: J31, J24, J51.
  • euro area, inter-industry wage differentials, panel estimation, firm and workforce characteristics, labour market institutions.
  • RePEc:ecb:ecbwps:200901022
Language
  • English
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