How human capital affects labor income share at the sectoral level?: Evidence from the EU-13 countries and the UK
ISSN: 0144-3585
Article publication date: 14 December 2021
Issue publication date: 18 October 2022
Abstract
Purpose
The author investigates the effects of human capital on labor income share in the 15 sectors of the European Union (EU)-13 countries and the United Kingdom (UK) over the period 2008–2015.
Design/methodology/approach
The author employs pooled ordinary least squares (OLS) estimation with panel data, using the EU KLEMS database.
Findings
The results show that when education level increases, labor income share increases and gender-based labor income share differentials decrease. Return to education is higher in qualitative sectors in contrast with the other sectors. Moreover, there are gender-based labor income share differentials at the sectoral level. These differentials are higher in nonqualitative sectors, while they are relatively lower in qualitative sectors.
Research limitations/implications
The biggest limitation of the study is that the data range cannot be expanded because of the database. The author is of opinion that the empirical findings will guide to policy makers in terms of wage setting.
Originality/value
The expected contribution of this study to the literature is to investigate the effect of human capital on labor income share at the sectoral level for the EU-13 countries and the UK. As far as the author knows, there is no study which investigates this topic at the sectoral level such a comprehensive, in the literature.
Keywords
Acknowledgements
Ethical approval: This article does not contain any studies involving animals performed by any of the author. Furthermore, it does not contain any studies involving human participants performed by any of the author.
Informed consent: Informed consent was obtained from all individual participants included in the article.
Conflicts of interest: The author declares that they have no conflict of interest.
Funding: The author received no specific funding for this article.
Citation
Çelik, O. (2022), "How human capital affects labor income share at the sectoral level?: Evidence from the EU-13 countries and the UK", Journal of Economic Studies, Vol. 49 No. 8, pp. 1491-1501. https://doi.org/10.1108/JES-02-2021-0072
Publisher
:Emerald Publishing Limited
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