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This paper aims to build on existing studies on the relationship between individual wages, age and experience, and provide new evidence on the determinants of wages in Italy.

Wage‐age profiles, which include cohort variables to capture generational differences in wages and are characterised by a changing‐over‐time structure, are estimated by fixed and random effects panel regressions. The analysis exploits a longitudinal dataset of administrative data on wages for the period 1985‐1999.

This paper shows that wage to age profiles for different cohorts of workers are not stable over time: although younger generations of Italian workers are benefiting from higher starting wages than older generations, they face the prospect of lower growth of future earnings. It also confirms the existence of a significant supply effect: the bigger the cohort relative to the active population, the smaller the cohort's gain in terms of wage levels. Finally, it captures the dependence of individual wages on aggregate labour market conditions: individual wages are shown to be negatively related to the unemployment rate and positively related to the union wage index.

Although the paper does not propose a novel theoretical approach to individual wage analysis, it demonstrates the benefits of a more integrated empirical analysis of individual wages.

The empirical findings suggest that it would be possible and useful to integrate the changing age profiles of individual wages with the estimation and projections of Italian aggregate industry and service sector average wages.

The paper provides new evidence on the determinants of the dynamics of individual wages through the estimation of time‐varying wage to age profiles of workers in the Italian industry and service sectors.

The paper aims to examine factors that influence individuals' preferences between wages indexed on job performance or efficiency over equity-based wages.

Generalized linear latent and mixed models (GLLAMM) are estimated on the 2005 wave of the World Values Survey on employed individuals from 43 countries.

Results suggest that employees' preference for efficiency-based wages increases with education and globalization, while it decreases with unemployment rates.

Institutions and specifically public policies that promote education, and globalization, along with policies that reduce unemployment rates could be used to promote wage setting policies that reward performance or efficiency.

The originality of the study lies in its use of both individual- and country-level data to estimate GLLAMM that take into account the multi-level nature of the dataset. This study can inform firms and policymakers on what measures to adopt to promote preferences for efficiency-based wages among individuals.

This article analysis the impact of training on wages using combined survey‐register material. The objective is threefold: to combine survey and register information to estimate individual return from training on wages; to estimate the impact from both individual and firm level training on individual wages; and to confront the results with control for unobserved individual and firm level heterogeneity. Results using register data show that the return from individual training is approximately 3.1 per cent per year. The return from the average training level at the firm is also positive and significant. After control for unobservable individual and firm level heterogeneity a positive impact from individual training is found, but evidence of a positive relationship between the mean level of training at the firm level and individual wages is no longer found. Our interpretation of these findings is that training has a positive individual effect, but has no positive firm‐specific external effects on other workers at the plant.

The purpose of this paper is to contribute to a better understanding of whether emerging economies benefit or suffer more because of value-chain activities than advanced economies do. Specifically, it focuses on the consequences in terms of individual wages.

Panel data techniques are used to estimate an expanded Mincerian wage equation over the period 1995-2007. The analysis is performed using micro-level data for two countries that represent two different experiences of value-chain activities in Central Europe: Germany and Slovenia.

Increasing value-chain activities reduce wages for low-skilled workers in high-skill-intensive industries in Germany, hence driving up the skill wage premium. Conversely, evidence is found of a decreasing skill wage premium as a consequence of increasing value-chain activities in Slovenia. Finally, increasing value-chain activities reduces the wages of workers in low-skill-intensive industries in both Germany and Slovenia.

This paper analyses the effect of value-chain activities on wages. It is the first empirical assessment that brings individual wage data directly into the picture for an international comparison focussed on two Central European countries that represent “two faces” of value chains. This paper shows that the effects of increasing value-chain activities on wages differ by country, by industry and by individual skills.

This article aims to examine whether specific job tasks measured at the individual level or personality traits are associated with wages and whether the relationship between personality traits and wages differs depending on the job tasks that individuals perform.

This study analyzes the association between job tasks and personality traits, and their interaction, with regard to wages using German employee data from 2017/2018.

Results suggest that nonroutine manual, interactive or analytic tasks are associated with significantly higher wages compared to routine manual tasks, and while extraversion and emotional stability are related to higher wages, agreeableness and openness tend to be associated with lower wages also within occupations. Moreover, the association between personality traits and wages varies depending on the job task requirements at the workplace. A high degree of extraversion in particular is associated with higher wages when the employee performs nonroutine manual, interactive or analytic tasks.

To date, especially the interaction between individual job tasks and personality traits on wages has not been extensively studied because data on both job tasks and personality at the employee level are scarce. This study contributes to the understanding of wage differences among employees.

The authors’ goal in this paper is to study if there are long-run effects on the wages of those workers who entered the labour market overeducated but who have, over time, been able to overcome this situation by obtaining a job for which they are correctly matched.

This study universe is constituted by workers entering the labour market with a university degree between 2004 and 2012. The age range of these individuals is between 22 and 35 years old. With the data of the 8,359 selected individuals, the authors have constructed a balanced panel covering the period 2013–2017. This methodology is developed in two steps. First, the authors estimate a wage equation with the traditional variables and, second, the authors use the estimated coefficients of these variables to predict the wage paths of a representative individual in each group.

The main result the authors obtain indicates that the wages of those who manage to overcome an initial situation of overeducation do converge but very slowly to the respective wages of those others that entered the labour market correctly matched from the beginning. The authors consider this result to point towards the existence of scarring effects in wages induced by an initial situation of overeducation. The authors also present evidence, beyond education, about the influence that the occupational characteristics that a worker has on wages.

The factors that can influence the catching-up of wages are multiple, and it is not feasible to test all of them empirically. Therefore, the wage convergence process the authors present may also be influenced by other variables for which the authors do not have information.

This paper contributes to different branches of the labour market. First, the authors present new evidence within the literature dealing with the so-called scarring effects on wages related to the conditions entering the labour market. Secondly, this study’s results provide a new argument that complements those developed so far that explain a reduction in the wage skill premium detected among young graduates in Spain. Finally, this paper contributes to advancing research about the effects that overeducation has on wages.

The question the authors are attempting to answer in this paper can be formulated in the following terms: when a worker manages to overcome an initial situation of overeducation, what happens to his/her wage? Will it adjust quickly to the new working situation, or will we observe a slow convergence to the wages of workers with an employment history without overeducation situations? To the best of the authors’ knowledge, this topic has not yet been studied. Researchers have mostly focused their attention on comparing the wages of overeducated workers with the wages of those who are correctly matched. In this case, the authors compare the wages of correctly matched workers, but with the difference that some were initially overeducated and others were not.

The purpose of this paper is to show that for some key topics on labour economics such as the effect of seniority and job mobility in wages, it is important to explicitly consider firm fixed effects. The author also wants to test whether the importance of firm in explaining wage dispersion is higher or lower in Spain than in other European countries.

The author estimates an individual wage equation where firm and workers effects are considered and the estimation process control for censored wages. This exercise is performed for the Spanish economy over the course of a whole business cycle, i.e., 2000-2015.

The author demonstrates that Spanish firms contribute to explain around 27 per cent of the individual wage heterogeneity but more importantly around 74 per cent of inter-industry wage differentials. In both cases, this contribution is mainly related to large dispersion in firm’s wage policies. The process of positive sorting of workers across firms or industries does not play an important role. Interestingly, the importance of firm’s wage policies in explaining individual wage dispersion has increased over the current Big Recession.

The results confirm that firms set wages and, henceforth, are partially responsible for individual wage heterogeneity but more importantly for inter-industrial wage dispersion.

The exercise is performed under optimal conditions because the author uses a longitudinal matched employer-employee data set, observed wages are at a monthly frequency, and implements an estimation method suitable for censored models with two high-dimensional fixed effects. This is the first study that looks deeply into the role of firms in explaining wage heterogeneity at the individual and industry level in Spain and along the current Big Recession.

The goal of the paper is to investigate how reservation wages of older unemployed welfare recipients change once they are no longer subject to standard job search requirements.

The authors apply a regression discontinuity design.

Consistent with theoretical predictions, the authors’ findings indicate that eliminating job search requirements will tend to increase reservation wages.

The results correspond to previous findings in the literature that monitoring leads to lower accepted wages and increased exits rates from unemployment, and that it may be a successful policy measure to keep older workers in the labor market.

Monitoring of job search effort has been shown to be an effective method of activating unemployed people, but little evidence has been found on the effect of activation measures on older workers.