@TechReport{iza:izadps:dp1291, author={Koeniger, Winfried and Leonardi, Marco and Nunziata, Luca}, title={Labour Market Institutions and Wage Inequality}, year={2004}, month={Sep}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={1291}, url={https://www.iza.org/publications/dp1291}, abstract={In this paper we investigate the importance of labor market institutions such as unemployment insurance, unions, firing regulation and minimum wages for the evolution of wage inequality across countries. We derive a simple log-linear equation of the wage differential as a function of the institutional parameters, total factor productivity, final good prices and relative skill supply. Our estimates for 11 OECD countries imply that labor market institutions can account for a large part of the change of wage inequality across countries after controlling for time and country effects.}, keywords={bilateral monopoly;wage differential by skill;labor market institutions;country panel data}, }