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Table 8 Relationship between wage inequality and wage-setting institutions, employed persons, 2011

From: Wage inequality, skill inequality, and employment: evidence and policy lessons from PIAAC

Institutions/inequality

Minimum wage

Union density

Union membership

Bargaining coordination

Comprehensiveness indexb

COV

−0.65a

−0.78a

−0.63a

−0.84a

−0.78a

D9/D1

−0.70a

−0.85a

−0.61a

−0.71a

−0.62a

D9/D5

−0.72a

−0.71a

−0.61a

−0.86a

−0.76a

D5/D1

−0.43a

−0.67a

−0.38a

−0.37a

−0.32a

Gini

−0.66a

−0.87a

−0.69a

−0.78a

−0.72a

  1. Source: institutions from Schumpeter School International Comparative Institutions Database, for details, see (Jovicic 2015). Wage Inequality from PIAAC
  2. aRepresents 1% significance level
  3. bComprehensiveness index corresponds to product of bargaining level and bargaining coverage (see Schettkat 2003)