Labour market institutions and the industry wage distribution

Barth, Erling; Zweimüller, Josef

doi:10.1007/bf00924960

Cited by 25 publications

(33 citation statements)

References 14 publications

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“…In recent years, comparable results have been obtained for a large number of countries (Araï et al, 1996;Hartog et al, 1997Hartog et al, , 2000Vainiomäki and Laaksonen, 1995). In parallel, it has been shown that the structure of inter-industry wage differentials is quite consistent and strongly correlated between countries, but that its scale varies considerably between industrialised countries (Barth and Zweimüller, 1992;Edin and Zetterberg, 1992;Helwege, 1992;Zanchi, 1992;Kahn, 1998;Teulings and Hartog, 1998;Björklund et al, 2007;Gannon et al, 2007;Du Caju et al, 2010).…”

Section: Inter-industry Wage Differentials: What Do We Know?supporting

confidence: 53%

Wage Structure Effects of International Trade: Evidence from a Small Open Economy

2011

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In the last decades, international trade has increased between industrialised countries and between high-and low-wage countries. This important change has raised questions on how international trade affects the labour market. In this spirit, this paper aims to investigate the impact of international trade on wage dispersion in a small open economy. It is one of the few to: i) use detailed matched employer-employee data to compute industry wage premia and disaggregated industry level panel data to examine the impact of changes in international trade on changes in wage differentials, ii) simultaneously analyse both imports and exports, and iii) examine the impact of imports according to the country of origin. Looking at the export side, we find (on the basis of the system GMM estimator) a positive effect of exports on industry wage premia. The results also show that import penetration has a significant and negative impact on industry wage differentials whatever the country of origin. However, the country of origin appears to matter quite a lot. Indeed, the detrimental effect of imports on wages is found to be significantly bigger when the latter come from low-income countries than from high-income countries. AbstractIn the last decades, international trade has increased between industrialised countries and between high-and low-wage countries. This important change has raised questions on how international trade affects the labour market. In this spirit, this paper aims to investigate the impact of international trade on wage dispersion in a small open economy. It is one of the few to: i) use detailed matched employeremployee data to compute industry wage premia and disaggregated industry level panel data to examine the impact of changes in international trade on changes in wage differentials, ii) simultaneously analyse both imports and exports, and iii) examine the impact of imports according to the country of origin. Looking at the export side, we find (on the basis of the system GMM estimator) a positive effect of exports on industry wage premia. The results also show that import penetration has a significant and negative impact on industry wage differentials whatever the country of origin. However, the country of origin appears to matter quite a lot. Indeed, the detrimental effect of imports on wages is found to be significantly bigger when the latter come from low-income countries than from high-income countries.

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Section: Inter-industry Wage Differentials: What Do We Know?supporting

confidence: 53%

Wage Structure Effects of International Trade: Evidence from a Small Open Economy

2011

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“…According to Barth − Zweimüller (1992) and Zweimüller − Barth (1994) (unadjusted) industry wage differentials in Austria (obtained from a wage regression without controlling for human capital variables and other variables such as gender and occupations) are closer to the values for the USA and Canada than to Norway or Sweden. When, however, in addition to industry dummy variables other variants are included in the wage regression, wage dispersion (as measured by the standard deviation of the industry coefficients) is considerably smaller, much smaller than the corresponding value for the U.S., and even smaller than for Norway.…”

Section: Studies Based On Data From Household Surveysmentioning

confidence: 96%

“…While Krueger and Summers present results on the size of industry effects at the level of three-digit industries, the study by Barth − Zweimüller (1992) contains a breakdown of the economy into only 22 sectors, and concludes that in Austria industry affiliation does not seem to be very important, as only between 1 and 11 percent of the total variance is attributable to the industry dummies (Barth − Zweimüller, 1992: 191). Statistical procedures using this high level of industry aggregation may seriously underestimate the importance industry effects.…”

Section: The Level Of Industry Aggregationmentioning

confidence: 99%

“…Studies investigating the extent of inter-industry wage differentials include industry dummy variables in addition to human capital characteristics and other control variables in the estimation equations (Barth − Zweimüller, 1992, Dickens − Katz, 1987, Hofer, 1992, Katz − Summers, 1989, Krueger − Summers, 1988, Zweimüller − Barth, 1994. Thus, the level of aggregation by industry has a potentially important effect on the size of the estimated industry coefficients, which represent the extent of inter-industry differentials.…”

Section: The Level Of Industry Aggregationmentioning

confidence: 99%

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How large are wage differentials in Austria?

Pollan

2008

Empirica

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte.

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“…(12% of agreements 1985, Tomandl et al 1992. As a consequence, Austrian inter-industry wage differentials are a bit higher than in the Nordic countries, but much lower than in the US (Winter-Ebmer, 1994, Barth, Zweimüller, 1992.…”

Section: Wage Bargaining Institutions and Job Security Legislation Inmentioning

confidence: 99%

Firm Size, Earnings, and Displacement Risk

Winter‐Ebmer

2001

Economic Inquiry

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Analogous to the well-documented firm size-wage differential there also exists a differential in layoff risk according to firm size. Using Austrian data I discuss several reasons for this puzzle, including on-the-job training and workers' heterogeneity. If less stable (and also less able) workers select themselves into small, unstable and low paying firms, predicted layoff risk of workers can be used as a proxy for heterogeneity of workers and therefore be included in wage regressions. Doing this, one-third of the size earnings premium can be explained. JEL: J31, J63

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Labour market institutions and the industry wage distribution

Cited by 25 publications

References 14 publications

Wage Structure Effects of International Trade: Evidence from a Small Open Economy

Wage Structure Effects of International Trade: Evidence from a Small Open Economy

How large are wage differentials in Austria?

Firm Size, Earnings, and Displacement Risk

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