Understanding inter-industry wage structures in the euro area

Arbeitspapier

This paper focuses on the euro area wage structure and its potential determinants from a sectoral viewpoint. Merging information from the OECD Structural Analysis database with data from the EU Labour Force Survey, we construct a cross-country panel of 22 industries in 8 euro area countries for 1991-2002. Data inspection confirms the existence of a fairly stable inter- industry wage structure that is similar across countries. We then apply panel data techniques to identify factors explaining inter-industry wage differentials in the euro area. Both workforce characteristics (e.g., human capital variables) and firm-related characteristics (e.g., capital intensity, productivity) contribute significantly. However, considerable wage heterogeneity across sectors remains. Idiosyncratic sector and country specifics, reflecting different sociocultural and institutional backgrounds, appear to bear a major role. While our paper only uses direct evidence from workforce and firm-related characteristics, we also try to relate the remaining heterogeneity to institutional characteristics, based on available relevant literature.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ECB Working Paper ; No. 1022

Classification and Topics

• Classification: Wirtschaft ; Wage Level and Structure; Wage Differentials ; Human Capital; Skills; Occupational Choice; Labor Productivity ; Trade Unions: Objectives, Structure, and Effects
• Subject: euro area ; firm and workforce characteristics ; inter-industry wage differentials ; Labour market institutions ; panel estimation ; Sektorale Lohnstruktur ; Eurozone ; Humankapital ; Kapitalintensität ; Produktivität ; Arbeitsmarktflexibilität ; EU-Staaten

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Genre, Véronique ; Kohn, Karsten ; Momferatou, Daphne
• Event: Veröffentlichung
• (who): European Central Bank (ECB)
• (where): Frankfurt a. M.
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/153456
• Last update: 10.03.2025, 11:43 AM CET