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Title:Supply and Demand, Allocation and Wage Inequality: An International Comparison PDF Logo
Authors:Dupuy, Arnaud
Borghans, Lex
Issue Date:2003
Series/Report no.:IZA Discussion paper series 907
Abstract: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.
Subjects:allocation
wage inequality
JEL:J23
J21
J31
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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