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While there has been intense debate in the empirical literature over the evolution of the college wage premium in the United States, its evolution in Europe has received little attention. This paper investigates the causes of the evolution of the college wage premium in 12 European countries from 1994 to 2009, assessing the relevance of the supply factor as a determinant of the college wage premium. I use cross-country variation in relative supply, demand, and labour market institutions to examine their effects on the trend in wage inequality. I address possible concerns of endogeneity of the relative supply using an IV strategy exploiting the differential legislations of university autonomy and their variations over time. Results show that the strong increase in the relative supply that European countries have experienced has decreased the college wage premium. The most relevant institution is the minimun wage, which significantly decreases college wage premium.

This paper aims to examine how the “wage premium,” the percentage by which wages earned by skilled workers exceed those of unskilled workers, varies across industries characterized by different levels of competitiveness.

A theoretical model employing constant elasticity of substitution (CES) utility function and constant returns to scale production function is developed and analyzed to derive the effects of industry competitiveness on the wage premium. Econometric methods are applied to Chilean manufacturing data to test implications of theoretical model.

Once the relative factor endowment is being controlled, market competition significantly reduces the wage premium. More specifically, given with the same relative factor endowment, the wage premium is significantly higher under oligopolistic competition than under monopolistic competition. Empirical evidence from Chilean manufacturers supports our theoretical conclusions.

During economic development, the reallocation of production factors from unskilled labor-intensive to skilled labor-intensive industries raises the wage premiums received by skilled workers. Besides, skilled workers will earn higher wages by working in more highly concentrated industries instead of more competitive industries. This needs to be considered by government policymakers who must balance promotion of technical change with prevention of extreme the income inequality.

This paper examines how market structure affects wage premiums, providing new insights into a well-established literature that largely maintains that wage premiums are primarily a function of relative factor endowments or international trade.

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.

The purpose of this study is threefold: to examine the impact of a remuneration committee (RC) on the level of chief executive officer (CEO) remuneration; whether firms with a RC, pay a premium to CEOs with different skill sets (general or specific); and whether a pay premium mitigates the potential for CEO turnover.

This study uses a sample of 5,305 firm-year observations on a data set drawn from companies listed on the Australian Securities Exchange for the period 2007 to 2014. The authors use ordinary least squares as well as logit regression techniques to test the formulated hypotheses. Difference in difference and propensity score matching techniques were undertaken to address the endogeneity concerns.

The findings show that firms with a RC pay a higher total remuneration to CEOs compared to firms without a RC. Furthermore, firms with a RC, value and reward CEOs with general skills by paying a premium not offered to CEOs with industry-specific skills. Paying a premium, in turn, mitigates CEO turnover by strengthening the CEO’s commitment to the organisation.

The study helps us to understand the critical role played by the RC in the remuneration of CEOs. The findings show that RCs act as an effective governance mechanism to deal with issues of executive remuneration and to retain skilled CEOs. Additionally, CEOs who acquire and develop general managerial skills will be able to extract higher pay from improved bargaining power. The findings will be of relevance to shareholders, regulators and company management who have an interest in executive pay and performance.

The purpose of this paper is to examine an endogenous growth model, as a component of a broader study of servicization with skill premium and its policy implications in the evolving digital economy.

This paper develops a two-sector endogenous growth model which allows for the observed characteristics of digitally empowered structural changes. Specifically, the driving force of economic growth is the expanding variety of intermediate services as a consequence of innovation in services. The introduction of new intermediate services specifically contributes to total factor productivity in the production of service sector, and thus an uneven growth path with skill premium toward a service economy generally exists.

The principal finding of this paper is that the digitally empowered expanding variety of intermediate services due to innovation contributes significantly to total factor productivity in the production of service sector, and thus a servicization with skill premium generally exists along a steady-state path. In addition, this paper derives an optimal innovation policy to rule out the market failures due to innovation externality and market power in monopolistic competition conditions, and shows the Rybczynski effects of exogenous endowment changes in the evolving digital economy.

The principal contribution of this paper is to determine how unbalanced endogenous growth along a steady-state path is linked with a service economy with skill premium in the evolving digital economy. In addition to this analysis, this paper provides policy implications – namely, that a positive but finite innovation subsidy can achieve the social optimum in the digital economy, and that an exogenous increase in high-skilled labor can speed up a digitally empowered economic growth.

The authors aim to investigate public‐private pay determination using French, British and Italian micro data from the 2001 ECHP (European Community Household Panel) and estimate public/private wage differentials by country. By focussing on different countries, they exploit institutional differences to gain insights on the process of pay formation.

The authors use regression techniques to compute the pay premium both at the average and at different education/skill levels. They then decompose the observed differences into a part due to characteristics and another part due to different returns between sectors, also at different quantiles of the wage distributions within skills.

Even after controlling for observable characteristics, the authors find an overall positive wage differential for public sector workers in each of the three countries. As expected, the differential varies by skill. In general, the present findings do not fully support the view that the public (private) sector pays more (less) among the low skilled than the private (public) sector, and that the opposite is true for the highly skilled. The authors also document that the public pay premium varies as one moves up or down in the skill distribution.

On the one hand, the authors’ results confirm that the public sector acts in general as a “fair employer”, compressing pay dispersion with respect to the private sector. On the other hand, the interactions of public and private labour market institutional arrangements play a crucial role in shaping the structure of relative wages across sectors. For example, when the monopsony power in wage bargaining is relevant in both sectors as, for example, in Britain, the private sector pays in absolute value proportionally less, and also the public wage premium is smaller.

This is the first attempt to use comparable data for three countries to analyse public/private wage differences by skill levels and to link the evidence with differences in public/private wage setting regimes.

This study aims to investigate the relationship between the demand on “soft” skills and suggested salaries for IT specializations in Russia.

Based on the database of vacancies, econometric modeling and cluster analysis of job occupations are implemented.

The results show positive association between demand for “soft” skills and wage if the model is controlled for the working experience and narrow professional occupations. Findings provide evidence that there is significant wage premium for “soft” skills in cases when job positions either imply no experience or require specialists with at least three years of tenure.

This research provides new evidence on the relationship between “soft” skills and wage using job postings data from Russia. This paper identifies the presence of wage premium for “soft” skills among IT specialists if controlling for sub-specializations, year, region and working experience. The robustness checks indicate no significant changes in the obtained results.

This paper addresses revolutionary changes in the education, fertility and market work of U.S. families formed in the 1870s–1920s: Fertility fell from 5.3 to 2.6; the graduation rate of their children increased from 7% to 50%; and the fraction of adulthood wives devoted to market-oriented work increased from 7% to 23% (by one measure).

These trends are addressed within a unified framework to examine the ability of several proposed mechanisms to quantitatively replicate these changes. Based on careful calibration, the choices of successive generations of representative husband-and-wife households over the quantity and quality of their children, household production, and the extent of mother’s involvement in market-oriented production are simulated.

Rising wages, declining mortality, a declining gender wage gap, and increased efficiency and public provision of schooling cannot, individually or in combination, reduce fertility or increase stocks of human capital to levels seen in the data. The best fit of the model to the data also involves: (1) a decreased tendency among parents to view potential earnings of children as the property of parents and (2) rising consumption shares per dependent child.

Greater attention should be given the determinants of parental control of the work and earnings of children for this period.

One contribution is the gathering of information and strategies necessary to establish an initial baseline, and the time paths for parameters and targets for this period beset with data limitations. A second contribution is identifying the contributions of various mechanisms toward reaching those calibration targets.

The benefits of trade liberalization on upskilling and skill-based wage premiums for high-skilled workers have recently been questioned in policy circles, in part because of rising income inequality and populist movements in developed economies such as the USA. The purpose of this paper is to determine the effects of trade liberalization on the relative supply and demand for skills.

Through the systematic review of the literature on trade and skill acquisition, this paper isolates a total of 25 articles published over the past two decades.

Key findings demonstrate the importance of the relative development of the trading partner, with more developed countries experiencing higher upskilling, while less developed countries experience deskilling. Technology, geographic level of analysis, sector and gender were also found to be important influences on human capital acquisition associated with international trade.

Overall, the authors find support for the idea that trade with developing countries places pressure on low-skill jobs in developed countries but increases the demand for educated workers. The implications of shifts in skills for public policy-making and in terms of the skill premium on wages are discussed.

This study seeks to explore the demand side of the labour market influenced by the digital revolution. It aims at identifying the new composition of skills and their value as implicitly manifested by employers when they look for the new labour force. The authors analyse the returns to computing skills based on text mining techniques applied to the job advertisements.

The methodology is based on the hedonic pricing model with the Heckman correction to overcome the sample selection bias. The empirical part is based on a large data set that includes more than 9m online vacancies on one of the biggest job boards in Russia from 2006 to 2018.

Empirical evidence for both negative and positive returns to computing skills and their monetary values is found. Importantly, the authors also have found both complementary and substitutional effects within and between non-domain (basic) and domain (advanced) subgroups of computing skills.

Apart from the empirical evidence on the value of professional computing skills and their interrelations, this study provides the important methodological contribution on applying the hedonic procedure and text mining to the field of human resource management and labour market research.