This paper proposes a decomposition of the composition effect, i.e. the part of the observed between-group difference in the distribution of some economic outcome that can be explained by differences in the distribution of covariates. Our decomposition contains three types of components: (i) the...

This paper proposes a decomposition of the composition effect, i.e. the part of the observed between-group difference in the distribution of some economic outcome that can be explained by differences in the distribution of covariates. Our decomposition contains three types of components: (i) the...

In this paper, we propose a new comprehensive framework for analysing wage discrimination. This framework assesses wage discrimination on the grounds of conditional wage distributions (rather than just conditional means), regards the whole population (rather than just those in work) and employs...

In this paper, we propose a new comprehensive framework for analysing wage discrimination. This framework assesses wage discrimination on the grounds of conditional wage distributions (rather than just conditional means), regards the whole population (rather than just those in work) and employs...

We estimate the public wage gap in France for the period 1990-2002, both at the mean and at different quantiles of the wage distribution, for men and women separately. We account for unobserved heterogeneity by using fixed effects estimations on panel data and, departing from usual practice,...

In this paper we examine the relationship between computer premium and job position in Austria. We estimate cross-section wage equations and control for selectivity of computer use via a treatment effects model. We find that the size of the wage effect attributed to computer use varies...

We use a linked employer-employee data set from Germany to estimate the wage effect of foreign-affiliates in East and West Germany. In addition, the wage effects of the large number of West German affiliates which are located in East Germany are also considered. The implemented techniques allow...

This paper investigates the increase in wage inequality, the decline in collective bargaining, and the development of the gender wage gap in West Germany between 2001 and 2006. Based on detailed linked employer-employee data, we show that wage inequality is rising strongly – driven not only by...

This article aims at describing and discussing the development of wage inequality in Germany in relation to the decline in collective wage bargaining, as this could be the institutional cause for the development since the 1990s. At the same time, the polarization hypothesis is discussed. Wage...

Given the recent financial crisis, the German labour market performs relatively well. This has not been the case until recent years: collective bargaining and the rigid system of wage setting have been often cited as one of the reasons for Germany's high structural unemployment. Contrary, a...