Peng, Fei and Kang, Lili (2012): Labour market institutions and skill premiums: an empirical analysis on the UK 1972-2002.
Download (381kB) | Preview
This paper analyzes the links between labour market institutions and skill premiums in the UK, controlling for other explanatory variables such as market conditions, international trade and skill-biased technology. We find that the trade union decline in unskilled workers can explain more than half of degree premium’ increase over the period 1979-1998 in the private sector, while the overall effect of trade union on degree premiums is only one third during the same period. Decline of trade union has less significant effect on skill premiums in the public sector.
|Item Type:||MPRA Paper|
|Original Title:||Labour market institutions and skill premiums: an empirical analysis on the UK 1972-2002|
|Keywords:||skill premiums, trade union, panel data|
|Subjects:||J - Labor and Demographic Economics > J5 - Labor-Management Relations, Trade Unions, and Collective Bargaining > J51 - Trade Unions: Objectives, Structure, and Effects
J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure ; Wage Differentials
K - Law and Economics > K3 - Other Substantive Areas of Law > K31 - Labor Law
|Depositing User:||Fei Peng|
|Date Deposited:||04. May 2012 02:16|
|Last Modified:||12. Feb 2013 18:30|
Acemoglu, D. ; Autor, D. 2010. " Skills, Tasks and Technologies: Implications for Employment and Earnings." in Ashenfelter, O. and D. Card (eds.) Handbook of Labor Economics Volume 4, Amsterdam: Elsevier.
Acemoglu, D.; Aghion, P.; Violante, G. 2001. "Deunionization, Technical Change, and Inequality." Carnegie-Rochester Conference Series on Public Policy.
Acemoglu, Daron 1998. "Why do new technologies complement skills? Directed technical change and wage inequality." The Quarterly Journal of Economics, Nov.
Acemoglu, Daron 2003. "Patterns of Skill Premia." Review of Economic Studies, 70, 2, 199-230.
Ammermueller a, C.; Lucifora, F. O. ; Zwick, T. 2010. "Wage Flexibility in Regional Labour Markets: Evidence from Italy and Germany." Regional Studies, Taylor and Francis Journals, 44, 4, 401-421.
Atkinson, Anthony B. 2007. "The distribution of earnings in OECD countries." International Labour Review, 146, 1-2, 41-60.
Bell, B.D ; Pitt, M.K. 1998. "Trade union decline and the distribution of wages in the UK: evidence from kernel density estimation." Oxford Bulletin of Economics and Statistics, 60, 4, 509-528.
Blau, F.D. ; Kahn, L.M. 1996. "International Differences in Male Wage Inequality: Institutions versus Market Forces." Journal of Political Economy, 104, 791-837.
Brewer, M.; Sibieta, L. ; Wren-Lewis, L. 2008. "Racing away? Income inequality and the evolution of high incomes." IFS Briefing Notes, BN76.
Card, D.; Lemieux, T ; Riddell, W. C. 2003. "Unionization and Wage Inequality: a comparative study of the US, UK and Canada." NBER Working Paper No. W9473, National Bureau of Economic Research, Inc.
Card, D.; Lemieux, T. ; Riddell, W. C. 2004. "Unions and Wage Inequality." Journal of Labor Research, 25 (Fall), 519–562.
Daniel, K. ; Siebert, W.S. 2005. "Does Employment Protection Reduce the Demand for Unskilled Labor?" International Economic Journal, 19, 2, June, 197-222.
Devereux, P. J. ; Hart, R .A. 2006. "Real Wage Cyclicality of Job Stayers, Within-Company Job Movers, and Between-Company Job Movers." Industrial and Labor Relations Review, 60, 105-119.
Dickens, R. ; Manning, A. 2004. "Spikes and spill-overs: The impact of the national minimum wage on the wage distribution in a low-wage sector." The Economic Journal, 114, March, C95-C101.
Dickens, R.; Machin, S.J. ; Manning, A. 1999. "The Effects of Minimum Wages on Employment: Theory and Evidence from Britain." Journal of Labor Economics, 17, 1 (January), 1-22.
Dickens, Richard 2000. "The Evolution of Individual Male Earnings in Great Britain: 1975-95." The Economic Journal, 110 (January), 27-49.
Dinardo, J.; Fortin, N.M ; Lemieux, T. 1996. "Labour Market Institutions and the Distribution of Wage: a semi-parametric approach." Econometrica, 64, 1001-1044.
Disney, R.; Gosling, A.; Machin, S. ; Mccrae, J. 1998. "The Dynamics of Union Membership in Britain. A Study Using The Family and Working Lives Survey." DTI Research Report No.3., Department of Trade and Industry, London.
Ghose, Ajit K. 2000. "Trade liberalization, employment and global inequality." International Labour Review, 139, 3, 281-305. Gosling, A.; Machin, S. ; Meghir, C. 2000. "The Changing Distribution of Male Wages in the UK." Review of Economic Studies, 67, 635-666.
Gottschalk, P. ; Joyce, M. 1998. "Cross–National Differences in the Rise in Earnings Inequality, Market and Institutional Factors." Review of Economics and Statistics, 80, 489-502. Grimshaw, Damian 2009. "Can more inclusive wage-setting institutions improve low-wage work? Pay trends in the United Kingdom's public-sector hospitals." International Labour Review, 148, 4, 439-459.
Kahn, L.M. 2000. "Wage Inequality, Collective Bargaining, and Relative Employment from 1985 to 1994: Evidence from Fifteen OECD Countries " Review of Economics and Statistics, 82, 4, November, 564–579.
Katz, L.; Loveman, G.W. ; Blanchflower, D.G. 1995. "A comparison of changes in the structure of wage in four countries." In Freeman, R.B. and Katz, L.F. (Eds.) Differences and Changes in Wage Structure, Chicago: University of Chicago Press, 25-67.
Katz, Lawrence F.; Autor., David H. 1999. "Changes in the Wage Structure and Earnings Inequality." in Handbook of Labor Economics, Volume 3A, Orley Ashenfelter and David Card, eds. Amsterdam: Elsevier North Holland.
Katz, Lawrence F.; Murphy, Kevin M. 1992. "Changes in Relative Wages, 1963-1987: Supply and Demand Factors." The Quarterly Journal of Economics, 107, 1, 35-78.
Kaufman, B.E. 2007. "The impossibility of a perfectly competitive labour market." Cambridge Journal Of Economics, 31, 775-787.
Koeniger, W.; Leonardi, M. ; Nunziata, L. 2007. "Labour Market Institution and Wage Inequality." Industrial and Labor Relations Review, 60, 3, 340-356.
Koeniger, W.; Leonardi, Macro ; Nunziata, Luca 2004. "Labour Market Institution and Wage Inequality." IZA Discussion Paper No 1291. Bonn: Institute for the Study of Labor.
Krueger, A.B. 1993. "How Computer Have Changed the Wage Structure: Evidence From Microdata." The Quarterly Journal of Economics, 108, 33-60.
Krugman, P.R. 1994. "Past and Prospective Causes of High Unemployment." Economic Review, Federal Reserve Bank of Kansas City, fourth quarter, 23-43.
Krugman, P.R. ; Lawrence, R.Z. 1993. "Trade, Jobs, and Wages." NBER Working Paper No. W4478, National Bureau of Economic Research, Inc.
Lee, D.S. 1999. "Wage Inequality in the United States During the 1980s: Rising Dispersion or Falling Minimum Wage?" The Quarterly Journal of Economics, 114, 3, August, 977–1023.
Lindley, Joanne ; Machin, Stephen 2011. "Rising Wage Inequality and Postgraduate Education." IZA Discussion Papers 5981, Institute for the Study of Labor (IZA).
Machin, S. 1996. "Wage Inequality in the UK." Oxford Review of Economic Policy, 12, 1, 47-64.
Machin, S. 1997. "The Decline of Labour Market Institutions and the Rise in Wage Inequality in Britain." European Economic Review, Papers and Proceedings, 41, 3–5, April, 647–658.
Machin, S. 2001. "The changing naturing of labour demand in the new economy and skilled-biased technology change." Oxford Bulletin of Economics and Statistics, 63, special issue, 753-776.
Machin, S. ; Wilson, J. 2004. "Minimum wages in a low-wage labour market: Care homes in the UK." The Economic Journal, 114, March, C102-C109.
Machin, Stephen; Van Reenen, John 1998. "TECHNOLOGY AND CHANGES IN SKILL STRUCTURE: EVIDENCE FROM SEVEN OECD COUNTRIES." The Quarterly Journal of Economics, Nov.
Metcalf, D. 2004. "The impact of the national minimum wage on the pay distribution, employment and training." The Economic Journal, 114, March, C84-C86.
Moulton, B. R. 1986. "Random Group Effects and the Precision of Regression Estimates." Journal of Econometrics, 32, 385-397. Nickell, S.; Bell, B. 1996. "Changes in the Distribution of Wage and Unemployment in OECD Countries." The American Economic Review, 86, 2, Papers and Proceedings of theHundredth and Eighth Annual Meeting of the American Economic Association San Francisco,CA, January 5-7, 302-308.
Nijkamp, P ; Poot, J. 2005. "The Last Word on the Wage Curve?" Journal of Economic Surveys, 19, 3, 421-450.
O'mahony, M.; Robinson, C.; Vecchi, M. 2008. "The impact of ICT on the demand for skilled labour: A cross-country comparison." Labour Economics, 15, 6, 1435-1450.
Peng, Fei; Siebert, W. Stanley 2007. "Real Wage Cyclicality in Germany and the UK: New Results Using Panel Data." IZA DP No. 2688.
Perugini, Cristiano ; Pompei, Fabrizio 2009. "Technological change and income distribution in Europe." International Labour Review, 148, 1-2, 123-148.
Puhani, P. A. 2008. "Transatlantic Differences in Labour Markets: Changes in Wage and Non-Employment Structures in the 1980s and 1990s." German Economic Review, 9, 3, 312-338.
Sachs, J.D.; Shatz, H. 1994. "Trade and jobs in US Manufacturing." Brookings Papers on Economic Activity, 1, 1-84.
Schmitt, J. 1995. "The changing Structure of Male Earnings in Britain, 1974-1988." In Freeman, R.B. and Katz, L.F. (Eds). Differences and Changes in Wage Structure, Chicago: University of Chicago Press, 177-205.
Solon, G.; Whatley, W.; Stevens, A. 1997. "Wage Changes and Intracompany Job Mobility over the Business Cycle: Two Case Studies." Industrial and Labor Relations Review, 50, 402-415.
Solon, Gary; Barsky, Robert; Parker, Jonathan A. 1994. "Measuring the cyclicality of real wages: how important is composition bias?" NBER working paper.
Stewart, M.B. 2004. "The employment effects of the national minimum wage." The Economic Journal, 114, March, C110–C116.
Tzannatos, Zafiris ; Aidt, Toke S. 2006. "Unions and microeconomic performance: A look at what matters for economists (and employers)." International Labour Review, 145, 4, 257-278.
Walker, I. ; Zhu, Y. 2008. "The College Wage Premium and the Expansion of Higher Education in the UK." Scandinavian Journal of Economics, 110, 695-709.
Walker, I. ; Zhu, Y. 2003. "Education, Earnings and Productivity: Recent UK Evidence." Labour Market Trends, 111, 3, 145-152.
Wallerstein, M. 1999. "Wage-Setting Institutions and Pay Inequality in Advanced Industrial Societies.” " American Journal of Political Science, 43, 3, July, 649–680.
Wood, A. 1994. "North-South trade, employment, and inequality: Changing fortunes in a skill-driven world." Oxford: Clarendon Press.
Wood, Adrian. 1995. "How Trade Hurt Unskilled Workers." Journal of Economic Perspectives, 9 3, summer, 57-80.
Wood, Adrian. 1998. "Globalisation and the Rise in Labour Market Inequalities." The Economic Journal, 108, 450, 1463–1482.