TY  - CHAP
AB  - This article studies the evolution of the wage differentials between graduate (skilled) and non-graduate (unskilled) workers in several European countries from the beginning of the 1990s to the beginning of this century. The starting point is that all European countries show a common increase in the relative supply of skilled workers but different evolution of wage differentials. Economics theory usually relates the evolution of wage differentials not only to relative supply but also to skill-biased technological progress. I complement this explanation providing a theoretical model of wage bargaining where wage differentials are determined also by labour market institutions. My empirical findings show that both technological progress and labour market institutions are important in the determination of wage differentials. As for the former, I find that differentials depend on the pace and intensity at which technological progress takes place. As for labour market institutions, their effect, though important, is not always straightforward. In fact, some aspects of institutions, like minimum wage and the duration of unemployment benefits, favour unskilled workers while other aspects, like bargaining power and replacement rates from unemployment benefits, may magnify the differences in outside options and actually increase wage differentials.
VL  - 36
SN  - 978-1-78190-358-2, 978-1-78190-357-5/0147-9121
DO  - 10.1108/S0147-9121(2012)0000036005
UR  - https://doi.org/10.1108/S0147-9121(2012)0000036005
AU  - Corsini Lorenzo
ED  - Solomon W. Polachek
ED  - Konstantinos Tatsiramos
PY  - 2012
Y1  - 2012/01/01
TI  - Institutions, Technological Change and Wage Differentials between Skilled and Unskilled Workers: Theory and Evidence from Europe
T2  - Research in Labor Economics
T3  - Research in Labor Economics
PB  - Emerald Group Publishing Limited
SP  - 1
EP  - 33
Y2  - 2024/04/25
ER  -