Abstract

http://ssrn.com/abstract=1929651
 


 



Are Occupations Paid What They are Worth? An Econometric Study of Occupational Wage Inequality and Productivity


Stephan Kampelmann


Université Libre de Bruxelles (ULB)

Francois Rycx


Université Libre de Bruxelles (ULB) - Department of Applied Economics (DULBEA); Institute for the Study of Labor (IZA)


IZA Discussion Paper No. 5951

Abstract:     
Labour economists typically assume that pay differences between occupations can be explained with variations in productivity. The empirical evidence on the validity of this assumption is surprisingly thin and subject to various potential biases. The authors use matched employer-employee panel data from Belgium for the years 1999-2006 to examine occupational productivity-wage gaps. They find that occupations play distinct roles for remuneration and productivity: while the estimations indicate a significant upward-sloping occupational wage-profile, the hypothesis of a flat productivity-profile cannot be rejected. The corresponding pattern of over- and underpayment stands up to a series of robustness tests.

Number of Pages in PDF File: 39

Keywords: labour productivity, wages, occupations, production function, matched employer-employee data

JEL Classification: J24, J31, J44

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Date posted: September 18, 2011  

Suggested Citation

Kampelmann, Stephan and Rycx, Francois, Are Occupations Paid What They are Worth? An Econometric Study of Occupational Wage Inequality and Productivity. IZA Discussion Paper No. 5951. Available at SSRN: http://ssrn.com/abstract=1929651

Contact Information

Stephan Kampelmann (Contact Author)
Université Libre de Bruxelles (ULB)
CP 132 Av FD Roosevelt 50
Brussels, Brussels 1050
Belgium
François Rycx
Université Libre de Bruxelles (ULB) - Department of Applied Economics (DULBEA) ( email )
Ave. Franklin D Roosevelt, 50
Brussels, B-1050
Belgium
+32 0 2 6504110 (Phone)
+32 0 2 6503825 (Fax)
Institute for the Study of Labor (IZA)
P.O. Box 7240
Bonn, D-53072
Germany
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