Labour Market Institutions and Wage Inequality
نویسندگان
چکیده
In this paper we investigate the importance of labor market institutions such as unemployment insurance, unions, ring regulation and minimum wages for the evolution of male wage inequality across countries. We derive a simple log-linear equation of the wage di¤erential as a function of the institutional parameters, total factor productivity, nal 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 e¤ects.
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