The College Wage Gap in 10 European Countries: Evidence from Two Cohorts

49 Pages Posted: 27 Nov 2001

See all articles by Giorgio Brunello

Giorgio Brunello

University of Padua - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute for Economic Research); Institute for the Study of Labor (IZA)

Simona Comi

University of Milan

Claudio Lucifora

Università Cattolica del Sacro Cuore di Milano ; IZA Institute of Labor Economics

Date Written: November 27, 2001

Abstract

We study the recent evolution of the college wage gap with a unique data set that covers 10 European countries and two cohorts of male employees from the early to mid 1980s to the mid to late 1990s. We find evidence of significant cross country differences in the level and dynamics of the gap. There is also evidence that both the level and the growth of the college wage gap significantly differ between cohorts. The estimated growth in the gap turns out to be negatively correlated to changes in relative supply and positively correlated both with the long run rate of productivity growth and with an index of between industry demand shocks. Institutional changes also matter, and we find that countries that have experienced declines in union density, in the centralization of the wage bargain and in employment protection measures have also had a faster growth in the college wage gap.

Keywords: College wage gap, growth of college wage gap, labour market institutions, Europe

JEL Classification: J31

Suggested Citation

Brunello, Giorgio and Comi, Simona and Lucifora, Claudio, The College Wage Gap in 10 European Countries: Evidence from Two Cohorts (November 27, 2001). FEEM Working Paper No. 85.2000; IZA Discussion Paper No. 228. Available at SSRN: https://ssrn.com/abstract=292061 or http://dx.doi.org/10.2139/ssrn.292061

Giorgio Brunello (Contact Author)

University of Padua - Department of Economics ( email )

via Del Santo 33
35121 Padova
Italy
+39 049 827 4223 (Phone)
+39 049 827 4221 (Fax)

CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Poschinger Str. 5
Munich, DE-81679
Germany

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

Simona Comi

University of Milan ( email )

Via Festa del Perdono, 7
Milan, 20122
Italy

Claudio Lucifora

Università Cattolica del Sacro Cuore di Milano ( email )

Department of Economics and Finance
Largo Gemelli, 1
20123 Milano
Italy
+39 027 234 2525 (Phone)
+39 027 234 2781 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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