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Explaining international differences in male wage inequality by differences in demand and supply of skill

Leuven, E. and Oosterbeek, Hessel and van Ophern, H. (1998) Explaining international differences in male wage inequality by differences in demand and supply of skill. CEPDP, 392. Centre for Economic Performance, London School of Economics and Political Science, London, UK.

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Identification Number: 392

Abstract

According to Blau and Kahn (1996) international differences in male wage inequality cannot be explained by a simple model of supply and demand for skill. We provide compelling evidence that this conclusion is due to employing an inappropriate measure of skill. Their measure is based on the strong assumption that years of schooling and years of experience are comparable across countries. This paper employs a direct skill measure obtained from an international comparative literacy test. Using this alternative measure of skill, we find that international differences in male wage inequality by skill between the US on the one hand, and Canada, Germany, the Netherlands, Sweden and Switzerland on the other hand, are consistent with relative differences in demand and supply of skill.

Item Type: Monograph (Discussion Paper)
Official URL: http://cep.lse.ac.uk
Additional Information: © 1998 the authors
Subjects: H Social Sciences > HD Industries. Land use. Labor
L Education > L Education (General)
Sets: Collections > Economists Online
Research centres and groups > Centre for Economic Performance (CEP)
Date Deposited: 31 Jul 2008 14:30
Last Modified: 01 Oct 2010 09:15
URI: http://eprints.lse.ac.uk/id/eprint/20274

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