Konings, Jozef; Marcolin, Luca - In: IZA journal of European Labor Studies 3 (2014) 11, pp. 1-21
We simultaneously estimate a wage and a labor productivity equation where we include regional dummies as explanatory variables. We find that the wage-productivity gap reached 11% for Brussels and 4.2% for Wallonia in the years 2005 - 2012. This was driven by the negative performance in labor...