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The Earnings Distribution and Returns to Education in Ireland, 1987-94

Author

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  • Barrett, Alan
  • Callan, Tim
  • Nolan, Brian

Abstract

The increased supply of skilled labour and institutional factors have been advanced in an effort to explain why some countries have experienced smaller increases in earnings dispersion and in returns to education relative to the United States. Ireland’s supply of skilled labour has increased sharply in recent years and it has had a highly centralized wage bargaining structure; hence, low growth in earnings dispersion would be expected. We compare the distribution of earnings in Ireland in 1987–94 and find a surprisingly large growth in earnings dispersion. In addition, using a decomposition technique we find that much of this is accounted for by increasing returns to education.

Suggested Citation

  • Barrett, Alan & Callan, Tim & Nolan, Brian, 1997. "The Earnings Distribution and Returns to Education in Ireland, 1987-94," CEPR Discussion Papers 1679, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:1679
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    Citations

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    Cited by:

    1. John Fitz Gerald, 1999. "Wage Formation and the Labour Market," Palgrave Macmillan Books, in: Frank Barry (ed.), Understanding Ireland’s Economic Growth, chapter 7, pages 137-165, Palgrave Macmillan.
    2. Duffy, David & FitzGerald, John & Kennedy, Kieran A. & Smyth, Diarmaid, 1999. "Quarterly Economic Commentary, December 1999," Forecasting Report, Economic and Social Research Institute (ESRI), number QEC19994.
    3. Emer Smyth, 1999. "Educational Inequalities Among School Leavers in Ireland 1979-1994," The Economic and Social Review, Economic and Social Studies, vol. 30(3), pages 267-284.
    4. Donal O'Neill, 2000. "Evaluating Labour Market Interventions," Economics Department Working Paper Series n990300, Department of Economics, National University of Ireland - Maynooth.
    5. Donal O'Neill & Olive Sweetman, 1999. "Poverty and Inequality in Ireland: A Comparison using Measures of Income and Consumption," Economics Department Working Paper Series n860399, Department of Economics, National University of Ireland - Maynooth.

    More about this item

    Keywords

    Earnings Distribution; Returns to Education;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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