Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/326919 
Year of Publication: 
2024
Series/Report no.: 
UNU-MERIT Working Papers No. 2024-023
Publisher: 
United Nations University (UNU), Maastricht Economic and Social Research Institute on Innovation and Technology (UNU-MERIT), Maastricht
Abstract: 
This paper explores the impact of the sectoral composition of production on the evolution of occupational structures and relative wage differentials. We employ a shift-share analysis over three periods to highlight the relevance of sectoral employment in explaining shifts in the occupational employment structure. We introduce the Weighted Occupational Unemployment by Sector (WOUS), to capture the influence of sectoral demand by occupation and the influence of labor supply on relative wage differentials. We also leverage the sectoral share on total value added (VA) as a proxy for the direct impact of sectoral production composition on relative wages. Finally, we explore the determinants of sectoral wage differentials through an econometric panel regression analysis. Our results suggest that the sectoral composition of output influences the labor demand for distinct skills, affecting the occupational composition of employment and, thus, relative wages.
Subjects: 
Occupational structure
Relative wages
Structural change
Sector-specific labor demand
JEL: 
J21
J31
L16
O14
Creative Commons License: 
cc-by-nc-sa Logo
Document Type: 
Working Paper

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