The European Journal of Comparative Economics
ISSN: 1824-2979
Year: 2005, December. Volume: 2 - Issue: 2

Pay Inequality in Europe 1995-2000: Convergence Between Countries and Stability Inside

James Galbraith ; Enrique Garcilazo

View this article (PDF)

Start page: 139 - End page: 175

Inequality; Unemployment; Wage Level and Structure; Europe; Regional Labor Markets
This paper measures pay inequality in the EU during the convergence process to the Monetary Union. The decomposability property of Theil's T statistic permits us to construct a three-level hierarchical panel data set of pay inequalities for the years 1995-2000: between and within regions, countries, and for the European continent as a whole. We find a marked pattern of declining pay inequality across Europe for this period, which is due mainly to the rising (initially, negative) position of the United Kingdom and decreasing positive position of Germany.

Jel code: D63
Jel code: E24
Jel code: J31
Jel code: O52
Jel code: R23
In case of problems please write an e-mail to