Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/103504 
Year of Publication: 
2014
Series/Report no.: 
IZA Discussion Papers No. 8465
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
This paper investigates the dynamics of the distribution of unconditional and conditional - on technology - wages in Europe, using both industry and individual level data for the period 1995-2007. We find that the unconditional wage distribution shows scant signs of polarization in Europe. On the other hand, the effect of technology is more nuanced. At the industry level, technological changes have an effect on polarization of jobs, but not on polarization of wages. At the individual level, we use a counterfactual distributional analysis which accounts for the heterogeneity of tasks across occupations, and we find only mild evidence of wage polarization. Technology affects the lower and upper part of the wage distribution in different ways, with service tasks affecting the lower quantiles and abstract tasks affecting the higher ones.
Subjects: 
wage inequality
polarization
occupational tasks
offshoring
RIF-regressions
JEL: 
J3
J5
Document Type: 
Working Paper

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