Influence of the Sectoral Composition of Production on Occupational and Sectoral Wage Structures: Evidence from Multiple Economies

Marconi, Nelson and Spinola, Danilo and Porto, Tiago and Araujo, Eliane (2024) Influence of the Sectoral Composition of Production on Occupational and Sectoral Wage Structures: Evidence from Multiple Economies. Working Paper. UNU-Merit. (Submitted)

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Abstract

This paper explores the impact of the sectoral composition of production on the evolution of occupational structures and relative wage differentials. We employ a shift-share analysis over three periods to highlight the relevance of sectoral employment in explaining shifts in the occupational employment structure. We introduce the Weighted Occupational Unemployment by Sector (WOUS), to capture the influence of sectoral demand by occupation and the influence of labor supply on relative wage differentials. We also leverage the sectoral share on total value added (VA) as a proxy for the direct impact of sectoral production composition on relative wages. Finally, we explore the determinants of sectoral wage differentials through an econometric panel regression analysis. Our results suggest that the sectoral composition of output influences the labor demand for distinct skills, affecting the occupational composition of employment and, thus, relative wages.

Item Type: Monograph (Working Paper)
Dates:
Date
Event
9 September 2024
Published
Uncontrolled Keywords: Occupational structure, Relative wages, Structural change, Sector-specific labor demand
Subjects: CAH15 - social sciences > CAH15-02 - economics > CAH15-02-01 - economics
Divisions: Faculty of Business, Law and Social Sciences > College of Accountancy, Finance and Economics
Depositing User: Danilo Sartorello Spinola
Date Deposited: 12 Sep 2024 11:50
Last Modified: 12 Sep 2024 11:50
URI: https://www.open-access.bcu.ac.uk/id/eprint/15816

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