Changes in the Austrian structure of wages, 1996-2002: evidence from linked employer-employee data

Analyzing data from the Structure of Earnings Surveys we find that wage dispersion in Austria increased marginally between 1996 and 2002. There was an increase in the returns to education which accrued only to male workers. The positive effects of tenure and especially of experience on wages decreased over time. We adopt the Machado-Mata (2005) counterfactual decomposition technique which allows to attribute changes in each wage decile to changes in worker and workplace characteristics and into changes in returns to these characteristics. Behind the small net increase in inequality we document a number of interesting gross effects that influence the wage distribution. We find that both composition effects due to gender, education and age and market-driven effects such as changes in returns and changing workplace characteristics contributed to a higher dispersion of wages. JEL Classification: J22, J31Machado-Mata decomposition, quantile regression, Wage Structure

Cr5.7Si2.3P8N24 - a Chromium(+IV) Nitridosilicate Phosphate with Amphibole‐type structure

The first nitridic analog of an amphibole mineral, the quaternary nitridosilicate phosphate Cr5.7Si2.3P8N24 was synthesized under high‐pressure high‐temperature conditions at 1400 °C and 12 GPa from the binary nitrides Cr2N, Si3N4 and P3N5, using NH4N3 and NH4F as additional nitrogen source and mineralizing agent, respectively. The crystal structure was elucidated by single‐crystal X‑ray diffraction with microfocused synchrotron radiation (C2/m, a = 9.6002(19), b = 17.107(3), c = 4.8530(10) Å, β = 109.65(3)°). The elemental composition was analyzed by energy dispersive X‐ray spectroscopy. The structure consists of vertex‐sharing PN4‐tetrahedra forming zweier double chains and edge‐sharing (Si,Cr)‐centered octahedra forming separated ribbons. Atomic resolution scanning transmission electron microscopy shows ordered Si and Cr sites next to a disordered Si/Cr site. Optical spectroscopy indicates a band gap of 2.1 eV. Susceptibility measurements show paramagnetic behavior and support the oxidation state Cr+IV, which is confirmed by EPR. The comprehensive analysis expands the field of Cr‐N chemistry and provides access to a nitride analog of one of the most prevalent silicate structures

The Distributional Effects of Trade on Austrian Wages

To shed some light on the impact of the growing international division of labor on wages, this paper aims to assess the effect of trade on wage distribution in the Austrian manufacturing industry by estimating quantile wage regressions. In the regressions, we control for the share of imports and exports in the total production of industrial sectors and take into account the wage level of trading partners. A decomposition of wage changes from 1996 to 2002 shows that, while imports from low-wage countries had a dampening effect on manufacturing wages in Austria, wage growth was dampened above all by exports to high-wage countries. This could be interpreted as evidence for the “bazaar economy” hypothesis.

Employment Protection Regulations and Their Impact on Employment

Employment protection legislation (EPL) forms part of the institutional framework governing labor market allocation processes. It increases the costs enterprises incur when terminating contracts, either directly via severance payments or indirectly via procedural costs (e.g. notice periods or court trials). EPL is often considered to be the main reason for the high unemployment level in several euro area countries. While the empirical evidence for this correlation is generally rather weak, more robust results are found for its adverse impact on the employment opportunities of certain sociodemographic groups – especially women and the young. Another means to reduce the income risk associated with job loss are unemployment insurance benefits, which – contrary to employment protection – do not affect the employment opportunities of specific sociodemographic groups. An analysis of the effects of EPL on employment certainly needs to take into consideration other labor market institutions, too, as they are often highly correlated and their effects interact. Insofar as employment protection not only stabilizes the protected employees’ income, but also serves as an incentive to acquire firm-specific human capital, a certain degree of employment protection can also contribute to gross domestic product (GDP) growth.Employment protection, Severance pay, Flexicurity

In & Out – A Country Comparison Reflecting on the Enlargement Round of 1995

This paper provides an overview of the economic effects EU membership has had on the countries Austria, Finland and Sweden since their accession in 1995, primarily focusing on implications for price stability and GDP growth. EU accession has led to an intensification of competition or opened up industries to competition in the first place. This, in turn, has dampened prices, in particular in previously sheltered sectors like the agricultural sector. Economic integration has also had a positive effect on GDP growth, increasing annual growth by approximately 0.5 percentage point. As a non-EU member, Switzerland did not experience these benefits.EU Enlargement 1995

Changes in the Wage Distribution in Austria: An Analysis Based on European Union Structure of Earnings Survey Data

The dispersion of hourly wages in Austria hardly changed between 1996 and 2002. Somewhat weaker growth at the bottom of the distribution implies that wage inequality increased slightly. Compared with other EU countries, however, the distribution of wages remained remarkably stable in Austria. A decomposition of the changes in the wage distribution shows that the relatively small overall change is attributable to some contrasting developments. Apparently, both market-driven and predetermined factors contributed to this marginal increase in wage inequality. In particular, higher education levels and higher returns to education caused stronger growth in the upper wage dispersion range. At the same time, the rise in women’s participation in the workforce was one of the main reasons for lower wages to grow less strongly. These developments caused higher wage inequality on the one hand; on the other hand, the returns to general work experience deteriorated, which, in turn, had an equalizing effect on wages. The data also show that the differences in wages for men and women remained almost unchanged over time.wage structure, quantile regression, Machado-Mata decomposition, European Union

Subdued Economic Activity in the Euro Area and in Austria despite International Recovery

At the worldwide level, economic recovery appears to be picking up even more momentum. The U.S. has seen sharp increases in growth given the strong impetus from consumer spending and investment. In Asia, Japan seems to have ended its long period of economic recession, and the Chinese and Southeast Asian economies have continued to expand rapidly. The growth outlook has also improved for Eastern Europe. At the same time, however, economic recovery is still moderate in the euro area, and it appears that the risks have increased more than they have decreased. The positive effects of robust international demand are being offset by the subduing effect of the euro's rally, and domestic demand — especially consumer spending — has recently been less dynamic than expected. However, the inflation outlook is still assessed as favorable. Since the beginning of 2004 inflation in the euro area has been below 2% and is expected to remain at this low level. For Austria, economic development in the first half of 2004 is currently forecast with cautious optimism, although the data recently released for the second half of 2003 clearly did not live up to expectations. This is another reason why the situation in the Austrian labor market is still tight and not expected to improve in the first half of this year. Inflation will remain at its current low level. So far, the most striking event in 2004 has been the May 1 enlargement of the European Union to include ten new Member States. For most of the new members, acceding to the EU represents the climax of a political and economic transformation process, which had begun in 1989 and has generally been highly successful. The enlargement, adding another 74 million people to the EU's population, was also a unique event for the EU itself. In economic terms, we can expect the enlargement to have positive effects on medium-term growth throughout the EU. At the same time, new challenges have arisen regarding the monetary integration of these countries and the redefinition of the EU's policy on neighboring countries (proximity policy).Forecast