Open Conference Systems, STATISTICS AND DATA SCIENCE: NEW CHALLENGES, NEW GENERATIONS

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Workers’ skills and wage inequality: A time-space comparison across European Mediterranean countries
Gaetano Musella, Gennaro Punzo

Last modified: 2017-04-28

Abstract


The work aims at exploring how the changes in the demand of skills in the labour market affect wage inequality comparatively for four countries of Southern Europe (Greece, Italy, Portugal, and Spain). Through the Recentered Influence Function (RIF) regression of Gini index on EU-SILC data, Italy is compared to each other country concerned in order to assess the evolution of spatial inequality divides during the Great Recession (2005-2013). Gini gaps are then decomposed into the composition effect (employees’ endowments) and wage structure (how employees’ skills are rewarded). Based on our main results, Italy appears to be a less unequal country as part of the Mediterranean Europe. However, a clearer employment structure may slow country’s inequality growth, and thus, reducing spatial gaps.