Arbeitspapier

High Wage Workers and High Wage Peers

This paper investigates the effect of co-worker characteristics on wages, measured by the average person effect of coworkers in a wage regression. The effect of interest is identified from within-firm changes in workforce composition, controlling for personeffects, firm effects, and sector-specific time trends. My estimates are based on a linked employer employee dataset for the population of workers and firms of the Italian regionof Veneto for years 1982–2001. I find that a 10 percent increase in the average labour market value of co-workers' skills is associated with a 3.6 percent wage premium. I alsofind that around one fourth of the wage variation previously explained by unobserved firm heterogeneity is actually due to variation in co-worker skills, and that between 10 and 15 percent of the immigrant wage gap can be explained by differences in coworkercharacteristics.

Sprache
Englisch

Erschienen in
Series: ifo Working Paper ; No. 168

Klassifikation
Wirtschaft
Wage Level and Structure; Wage Differentials
Labor Discrimination: Other
Thema
Spillover effects
linked employer-employee dataset
skill segregation

Ereignis
Geistige Schöpfung
(wer)
Battisti, Michele
Ereignis
Veröffentlichung
(wer)
ifo Institute - Leibniz Institute for Economic Research at the University of Munich
(wo)
Munich
(wann)
2013

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Battisti, Michele
  • ifo Institute - Leibniz Institute for Economic Research at the University of Munich

Entstanden

  • 2013

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