A new GLO Discussion Paper finds that the wage premium to supervision defined as the extra wage that supervisors earn relative to their subordinates increases wage inequality across most of the European economies studied. The UK is particularly attractive to supervisors.
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GLO Discussion Paper No. 510, 2020
BrExit or BritaIn: Is the UK more Attractive to Supervisors? An Analysis of Wage Premium to Supervision across the EU – Download PDF
by Biagetti, Marco & Giangreco, Antonio & Leonida, Leone & Scicchitano, Sergio
GLO Fellows Marco Biagetti & Sergio Scicchitano
Author Abstract: We define the wage premium to supervision (WPS) as the extra wage that supervisors earn relative to their subordinates, and estimate it at different quantiles of wage distribution for 26 European economies, comparatively focusing on the UK. We find that, by compensating supervisory positions according to the wage, the WPS increases wage inequality across most of the economies studied. Further, over 10% of the WPS depends upon the economic context. Our results suggest that, regarding the WPS, the UK is more rewarding than the other economies. We discuss implications for immigration and policymakers in relation to the post-Brexit process.
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