Wage inequality, skill inequality, and employment: Evidence from PIAAC

Arbeitspapier

This paper investigates how much of the difference in wage distributions is related to differences in skill distributions and whether a compressed wage distribution is associated with high unemployment across core OECD countries. Some countries that have more compressed (dispersed) wage structures simultaneously have more compressed (dispersed) skill structures as well, and according to many economists, variations in skill inequality can explain variations in wage inequality across different countries. Firstly, this paper examines the relationship between skill compression and wage compression; secondly, wage compression is linked to labor market outcomes in terms of employment. Compressed wage structure (usually caused by labor market institutions) is often seen as a cause for high unemployment in the low-skill sector. Does the wage compression hypothesis hold? Based on the PIAAC survey of adult skills for seventeen OECD countries, this paper seeks to shed light on these two important topics.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Schumpeter Discussion Papers ; No. 2015-007

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Wage Level and Structure; Wage Differentials ; Human Capital; Skills; Occupational Choice; Labor Productivity ; Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
• Thema: wage distribution ; earnings ; skill distribution ; employment

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Jovicic, Sonja
• Ereignis: Veröffentlichung
• (wer): University of Wuppertal, Schumpeter School of Business and Economics
• (wo): Wuppertal
• (wann): 2015

Weitere Informationen

• Handle: http://hdl.handle.net/10419/121427
• URN: urn:nbn:de:hbz:468-20150831-121033-9
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ