Intra-country wage inequality in the OECD countries
In: Panoeconomicus: naučno-stručni časopis Saveza Ekonomista Vojvodine ; scientific-professional journal of Economists' Association of Vojvodina, Band 65, Heft 3, S. 339-362
ISSN: 2217-2386
Two reasons are mainly brought to explain the recent increase in
intra-country wage inequality in favour of high-skilled labour: Skill-Biased
Technological Change (SBTC) and International Trade Liberalisation (IT).
Since few empirical studies have attempted to assess both interpretations
across a comprehensive sample of countries, we have analysed the impact of
both and added some new variables within a unified framework and across 30
OECD countries, between 2001 and 2015. Using panel data, results show that
both explanations are crucial. However, considering all 30 OECD countries,
the IT argument dominates. Further, we show that seven clusters must be
considered in which at least one theory influence the wage gap.