Explaining international differences in male skill wage differentials by differences in demand and supply of skill
Faculty of Economics and Business (FEB)
Amsterdam School of Economics Research Institute (ASE-RI)
This paper explores the hypothesis that wage differentials between skill groups across countries are consistent with a demand
and supply framework. Using micro data from 15 countries we find that about one third of the variation in relative wages between
skill groups across countries is explained by differences in net supply of skill groups. The demand and supply framework does
an even better job at explaining relative wages of low skilled workers.
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