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International Differences in Wage Inequality: A New Glance with European Matched Employer–Employee Data
Author(s) -
Simón Hipólito
Publication year - 2010
Publication title -
british journal of industrial relations
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.665
H-Index - 70
eISSN - 1467-8543
pISSN - 0007-1080
DOI - 10.1111/j.1467-8543.2008.00708.x
Subject(s) - inequality , wage , economics , wage inequality , earnings , distribution (mathematics) , labour economics , demographic economics , mathematical analysis , mathematics , accounting
Using international harmonized matched employer–employee micro data from the European Structure of Earnings Survey for nine European countries, this article examines the origin of international differences in wage inequality. Wage inequality is highly correlated with the magnitude of inter‐firm wage differentials. Workplace‐ and job‐related factors generally have a more significant impact on within‐country wage inequality than individual characteristics. European countries differ significantly not only in the extent of wage inequality but also in the relative influence of factors shaping wage inequality. Although cross‐country differences in labour force composition play a part in the explanation, differences in the distribution and in labour market prices attached to workplace and job characteristics are the primary factors contributing to international differences in wage inequality.