Supply and Demand, Allocation and Wage Inequality: An International Comparison

Arbeitspapier

In this paper, we develop an allocation model of workers differentiated by their field of study to test whether international differences in the wage structure can be explained by differences in labor demand and supply in each country. The model explicitly takes into account the effects of supply and demand shifts on the allocation structure to disentangle country specific differences in the recruitment for one occupation from real supply-demand effects. Empirical results based on data for nine countries show that cross-country differences in wage inequality explain at least 2/3 of the differences in labor demand and supply.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 907

Classification and Topics

• Classification: Wirtschaft ; Labor Demand ; Labor Force and Employment, Size, and Structure ; Wage Level and Structure; Wage Differentials
• Subject: allocation ; wage inequality ; Lohnstruktur ; Arbeitsangebot ; Arbeitsnachfrage ; Allokation ; Schätzung ; Welt

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Dupuy, Arnaud ; Borghans, Lex
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2003

Further information

• Handle: http://hdl.handle.net/10419/20144
• Last update: 10.03.2025, 11:42 AM CET