Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/153702
Authors: 
Pointner, Wolfgang
Stiglbauer, Alfred
Year of Publication: 
2010
Series/Report no.: 
ECB Working Paper 1268
Abstract: 
Analyzing data from the Structure of Earnings Surveys we find that wage dispersion in Austria increased marginally between 1996 and 2002. There was an increase in the returns to education which accrued only to male workers. The positive effects of tenure and especially of experience on wages decreased over time. We adopt the Machado-Mata (2005) counterfactual decomposition technique which allows to attribute changes in each wage decile to changes in worker and workplace characteristics and into changes in returns to these characteristics. Behind the small net increase in inequality we document a number of interesting gross effects that influence the wage distribution. We find that both composition effects due to gender, education and age and market-driven effects such as changes in returns and changing workplace characteristics contributed to a higher dispersion of wages.
Subjects: 
Machado-Mata decomposition
quantile regression
Wage Structure
JEL: 
J22
J31
Document Type: 
Working Paper

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