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Sources of earnings dispersion in a linked employer-employee dataset : evidence from Norway

Salvanes, Kjell Gunnar; Lane, Julia; Burgess, Simon
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dp1998-22.pdf (106.0Kb)
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http://hdl.handle.net/11250/163016
Utgivelsesdato
1998-09
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  • Discussion papers (SAM) [586]
Sammendrag
We estimate a standard human capital earnings model, augmented to allow for different firmspecific

wage premia. The earnings of an individual depend on her human capital bundle and the earnings

mark-up of the firm she is currently working for. We use linked employer-employee data from Norway

which allows us to directly estimate the skill premium as a function of firm specific variables such as plant

size, the capital/labour ratio, market share, unionisation and openness to trade. We document the impact of

job reallocation and skill sorting on earnings dispersion. We find a large potential effect of labour reallocation on earnings dispersion.
Utgiver
Norwegian School of Economics and Business Administration. Department of Economics
Serie
Discussion paper
1998:22

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