TY  - RPRT
        AU  - Kampelmann, Stephan
AU  - Rycx, François
        TI  - Does Institutional Diversity Account for Pay Rules in Germany and Belgium?
        PY  - 2011/Oct/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 6010
        UR  - https://www.iza.org/publications/dp6010
        AB  - This paper examines the relationship between institutions and the remuneration of different jobs by comparing the German and Belgian labour markets with respect to a typology of institutions (social representations, norms, conventions, legislation, and organisations). The observed institutional differences between the two countries lead to the hypotheses of (I) higher overall pay inequality in Germany; (II) higher pay inequalities between employees and workers in Belgium; and (III) higher (lower) impact of educational credentials (work-post tenure) on earnings in Germany. We provide survey-based empirical evidence supporting hypotheses I and III, but find no evidence for hypothesis II. These results underline the importance of institutional details: although Germany and Belgium belong to the same "variety of capitalism", we provide evidence that small institutional disparities within Continental-European capitalism account for distinct structures of pay.
        KW  - rules
KW  - wage inequality
KW  - labour market institutions
KW  - collective bargaining
        ER  -