Firm wage premia account for about one‑third of overall wage inequality
The dispersion of firm wage premia tends to be higher in countries with high productivity dispersion
The dispersion of firm wage premia is lower in countries with high job mobility
A significant share of workers are exposed to high labour market concentration
Three quarters of the gender wage gap is concentrated within firms while the remaining quarter reflects the sorting of women in low-wage firms
Comparison of LinkEED with official statistics
A significant share of overall wage inequality is between firms
Skill dispersion across firms is large and increasing
Women increasingly work in high-wage firms
Distinguishing between firm-wage premia and worker sorting
Contribution of firm-wage premia to variance of wages
Worker-to-worker and worker-to-firm sorting have often moved together
The role of collective bargaining and job mobility in firm wage premia dispersion
Annex Figure 2.A.1. Total log wage variance, all years and countries
Between-firm wage premia dispersion mainly reflects dispersion within the same industry
Positive association between productivity and wage premia dispersion
Firm-level productivity-wage pass-through
Higher pass-through for high-skilled workers and men
The structural and policy drivers of productivity-wage pass-through
Labour market concentration reduces wages but raises productivity-wage pass-through
Annex Figure 3.B.1. Higher firm-level productivity pass-through and lower rent sharing typically go together
Annex Figure 3.B.2. Job mobility across countries
Local labour market concentration across countries
A high share of workers in rural areas is exposed to high concentration
A high share of manufacturing workers is exposed to high concentration
Low-qualified workers are exposed to higher concentration than medium and high qualified workers
Local labour market concentration has tended to decline
Trends in national sales and employment concentration (2002=100)
Local labour market concentration significantly reduces wages
The negative wage effect of concentration has tended to strengthen over time
Annex Figure 4.A.1. Local labour market concentration across sectors and regions
Annex Figure 4.A.2. Low-qualified workers do not systematically worker in higher-concentrated local labour markets
Annex Figure 4.A.3. No diverging trends in concentration across geographical areas
Annex Figure 4.A.4. Trends in labour market concentration in a larger country sample
Annex Figure 4.A.5. Hiring and employment HHI are identical in almost all countries
Annex Figure 4.A.6.Coarser definitions of local labour markets exhibit similar patterns
Annex Figure 4.B.1. On average across countries, the labour supply elasticity is around 2
Large and persistent gender wage gaps reflect differences in the characteristics of jobs and firms rather than those of workers
The gender wage gap increases over the working life in most countries
Gender gap in labour income
The gender wage gap between and within firms
Women are more likely to work in firms where part-time is more common and wages tend to be lower
The role of differences in tasks and responsibilities, pay for work of equal value and firm wage-setting practices in the gender wage gap
The role of sorting and bargaining in the gender wage gap in Estonia
The role of firms in the evolution of the gender wage gap over the working life varies across countries
The role of promotions in the gender gap within firms over the working life
The role of job-to-job job mobility in the gender wage gap between firms over the working life
The incidence and duration of career breaks varies across countries
Career breaks tend to be associated with significant wage losses
Annex Figure 5.A.1. The gender wage gap in the data used for this chapter (LinkEED Database) and as measured using the OECD Earnings Distributions Database (OECD Gender Database).
Annex Figure 5.A.2. Selection in employment based on unobservable worker characteristics only marginally affects the age-profile of the gender wage gap
Annex Figure 5.A.3. The role of differences in tasks and responsibilities, pay for work of equal value and firm wage-setting practices in the evolution of the gender wage gap over the life-course