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This thesis consists of an introduction, five self-contained research outputs on wage and income disparities across European labour markets and a final chapter discussing the main conclusions. Although each one of these pieces of research stands by itself, they are all interrelated and jointly provide a consistent picture from different angles about the recent evolution of wage and income disparities for the European Union (EU) as a whole and within European national labour markets, both before and after the Great Recession, including a policy proposal. The first output is a paper mapping the evolution of low-paid work over the period 2005– 2013 and exploring its underlying causes. The analysis uses an inflation-adjusted low-pay threshold anchored at 60 percent of median wages in 2007 to assess the impact of the Great Recession, showing that the share of low-paid employees increased for the EU as a whole and in two-thirds of European countries. This is explained by a general decline in real wage levels, particularly intense in the European periphery countries and at the bottom of the wage distribution as well as among employees with shorter tenures. Growing part-time employment also emerges as a significant driver of expanding low-paid work from the onset of the crisis. Moreover, the analysis identifies the existence of compositional effects that may have prevented a larger expansion of low-pay shares and masked the real extent of the wage correction. The second output is a paper presenting an overview of wage inequality trends from an EUwide perspective over the period 2005-2015 and discussing the contribution of convergence in wage levels and wage distributions between countries. The analysis shows that EU-wide wage inequality fell strongly prior to the crisis as a result of upwards convergence in wage levels, which was mainly driven by catch-up growth in Eastern European countries. EU-wide wage inequality has remained stagnant from the onset of the crisis due to the interruption of this process of convergence, which nevertheless is reactivating again in the most recent years due to a continuation of catch-up growth in Eastern Europe. Simultaneously, there was a process of convergence towards intermediate wage inequality levels, also partially interrupted by the crisis. Trends in wage inequalities across European countries are mixed from the onset of the crisis, partially due to the existence of compositional effects resulting from lower-paid employees being more likely to exit employment. Our results capture as well the strong

Essays on labour economics: Wage and income disparities in European labour markets amid the Great Recession