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Title: The Drivers of Wage Inequality Across Europe: A Recentered Influence Function Regression Approach
Authors: Pereira, João
Galego, Aurora
Keywords: inequality
inequality index
recentered influence function
Issue Date: 2-Jul-2016
Publisher: 10th Annual Meeting of the Portuguese Economic Journal
Abstract: This study analyzes the impact of individual characteristics as well as occupation and industry on male wage inequality in nine European countries. Unlike previous studies, we consider regression models for five inequality measures and employ the recentered influence function regression method proposed by Firpo et al. (2009) to test directly the influence of covariates on inequality. We conclude that there is heterogeneity in the effects of covariates on inequality across countries and throughout wage distribution. Heterogeneity among countries is more evident in education and experience whereas occupation and industry characteristics as well as holding a supervisory position reveal more similar effects. Our results are compatible with the skill biased technological change, rapid rise in the integration of trade and financial markets as well as explanations related to the increase of the remunerative package of top executives.
Type: article
Appears in Collections:ECN - Artigos em Livros de Actas/Proceedings

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