Working Paper Series, FIEF - Trade Union Institute for Economic Research
Wage and Compensation Inequality — How Different?
() and Ann-Charlotte Ståhlberg
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.
Keywords: Non-wage benefits; Compensation inequality; Wage inequality; Pension benefits; Sickness benefits; Survivors’ benefits; Collective-agreement insurance; Social insurance; (follow links to similar papers)
JEL-Codes: H55; J32; (follow links to similar papers)
21 pages, December 7, 2004
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