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Wage and Compensation Inequality — How Different?

Author

Listed:
  • Selén, Jan

    (Trade Union Institute for Economic Research)

  • Ståhlberg, Ann-Charlotte

    (SOFI)

Abstract

The paper compares the distribution of individuals’ wage to the distribution of labor compensation when important non-wage benefits are included. In our study for Sweden focus is on pensions, survivors’ benefits and sickness benefits. These are non-observed. A method of estimating these benefits indirectly is proposed and used to examine their contributions to overall earnings inequality. We find that insurance benefits increased annual earnings inequality by 40 percent. The share of the benefits to total earnings is 22 percent. The effect of the benefits is minor for blue collars and municipal white collars, while it is high for private white collars.

Suggested Citation

  • Selén, Jan & Ståhlberg, Ann-Charlotte, 2004. "Wage and Compensation Inequality — How Different?," Working Paper Series 197, Trade Union Institute for Economic Research.
    • Handle: RePEc:hhs:fiefwp:0197
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    File URL: http://swopec.hhs.se/fiefwp/papers/WP197.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Non-wage benefits; Compensation inequality; Wage inequality; Pension benefits; Sickness benefits; Survivors’ benefits; Collective-agreement insurance; Social insurance;
    All these keywords.

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions

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