Higher wages increase labor costs but improve the productivity of the labor force through several channels. If firms take this into account and set their wages accordingly, the resulting wages may fail to adjust demand and supply but may engender phenomena like over-education, discrimination,...

This paper explores how the diversity of minimum wage systems affects earnings inequalities within European countries. It relies on the combination of (a) harmonized micro-data from household surveys, (b) data on national statutory minimum wages and coverage rates, and (c) hand-collected...

This paper investigates how the distribution of wages differs between small and large establishments in four European countries. Findings show that within-establishment wage dispersion rises with size because large employers have a more diverse workforce. They also suggest that screening and...

Depuis près de 20 ans, la plupart des débats concernant la rémunération du travail sont centrés sur la question de la compétitivité. Si la question des coûts salariaux est évidemment importante, on en arrive cependant à oublier que tous les travailleurs belges ne sont pas logés à la...

This paper examines the role of worker and employer characteristics in the determination of wages in the Belgian private sector. Empirical findings, based on detailed matched employer-employee data covering the period 1995-2002, reveal the existence ceteris paribus of: i) a substantial but...

Wage Dispersion and Efficiency. It is often assumed that markets generate efficient allocations, but these are not necessarily fair. The widening of wage differentials that is currently observed is interpreted in this manner: Skill-biased technological progress increases demand for skilled work...

Wage Dispersion and Efficiency. It is often assumed that markets generate efficient allocations, but these are not necessarily fair. The widening of wage differentials that is currently observed is interpreted in this manner: Skill-biased technological progress increases demand for skilled work...

Sinds vrijwel twintig jaar, spits het debat over de verloning van arbeid zich in grote mate toe op de probematiek van de concurrentiekracht. De loonkostenproblematiek is uiteraard belangrijk, maar men vergeet daarbij soms dat niet alle Belgische werknemers over dezelfde kam geschoren mogen...

This paper examines the role of worker and employer characteristics in the determination of wages in the Belgian private sector. Empirical findings, based on detailed matched employer-employee data covering the period 1995-2002, reveal the existence ceteris paribus of: i) a substantial but...

Applicants for any given job are more or less suited to fill it, and the firm will select the best among them. Increasing the wage offer attracts more applicants and makes it possible to raise the hiring standard and improve the productivity of the staff. Wages that optimize on the trade-off...