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Title:Labour Market Institutions and Wage Inequality PDF Logo
Authors:Koeniger, Winfried
Leonardi, Marco
Nunziata, Luca
Issue Date:2004
Series/Report no.:IZA Discussion paper series 1291
Abstract:In this paper we investigate the importance of labor market institutions such as unemployment insurance, unions, firing regulation and minimum wages for the evolution of wage inequality across countries. We derive a simple log-linear equation of the wage differential as a function of the institutional parameters, total factor productivity, final good prices and relative skill supply. Our estimates for 11 OECD countries imply that labor market institutions can account for a large part of the change of wage inequality across countries after controlling for time and country effects.
Subjects:labor market institutions
wage differential by skill
bilateral monopoly
country panel data
JEL:E24
J65
J51
J31
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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