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Changes In The Austrian Structure Of Wages, 1996-2002: Evidence From Linked Employer-Employee Data

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Executive Summary

Analyzing data from the Structure of Earnings Surveys the authors find that wage dispersion in Austria increased marginally between 1996 and 2002. There was an increase in the returns to education which accrued only to male workers. The positive effects of tenure and especially of experience on wages decreased over time. They adopt the Machado-Mata (2005) counterfactual decomposition technique which allows attributing changes in each wage decile to changes in worker and workplace characteristics and into changes in returns to these characteristics. Behind the small net increase in inequality they document a number of interesting gross effects that influence the wage distribution.

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