Skills And Wage Inequality In Greece: Evidence From Matched Employer-Employee Data, 1995-2002
Source: European Central Bank
This paper examines changes in the Greek wage distribution over 1995-2002 and the role of skills in these changes using a matched employer-employee data set. This data set enables them to account for firm heterogeneity and obtain a more refined picture of the impact of skills. The methodology adopted is the Machado-Mata decomposition technique, which separates the part of wage changes that is due to changes in the job/employer and employee characteristics from the part due to changes in the returns to these characteristics. The results indicate that the role of skills has been decisive.