Open AccessLabour Market Returns and Wage Inequality: New Evidence for Europe
Author(s) -
Tiago Sequeira,
Marcelo Santos
Publication year - 2015
Publication title -
research in applied economics
Language(s) - English
Resource type - Journals
ISSN - 1948-5433
DOI - 10.5296/rae.v7i3.8020
Subject(s) - wage , economics , distribution (mathematics) , wage inequality , labour economics , inequality , efficiency wage , income distribution , demographic economics , mathematical analysis , mathematics
We study the relationship between returns to education and the wage distribution in Europe and we find evidence for a new fact: A hump-shaped relationship between returns and the wage distribution. This hump-shaped relationship between returns to education and the wage distribution means that investments on education contributes to increase inequality between the lower bound of the wage distribution and the median (roughly) but for the richer part of the wage distribution, education tends to decrease wage inequality. There is also evidence of a non-monotonous relationship between returns to tenure and gender, on one side, and the wage distribution, on the other side.