Tibor Takács



A Cross-Country Comparison of Relative Wages

pdf PDF


This paper demonstrates that the relative wages are significantly different by country. The relative wages are ratios of average wages of specific occupations to the minimum wage. The possible causes of the different wage patterns are analyzed. An online database is used, which makes it possible to compare the relative wages of similar occupations corresponding to 4 digits ISCO categories. The database of the analysis includes data of 25 countries and 22 occupations. It is examined if there are certain groups of countries, where the wage patterns show similarities.


Wage structure, ISCO’08 classification, cluster analysis, cross-country comparison


[1] Caju,P., Kátay, G., Lamo, A., Nicolitsas, D., Poelhekke, S.: Inter-industry wage differentials in EU countries – What do cross-country time varying data add to the picture? European Central Bank Working Papers No. 1182, 2010.

[2] Davis, S. J.: Cross-country patterns in relative wages. National Bureau of Economic Research, Working Paper 4085, 1992.

[3] Freeman, R. B., Oostendorp, R. H.: Wages around the world: pay across occupations and countries. National Bureau of Economic Research, Working Paper 8058, 2000.

[4] Gibbons, R., Katz, L.: Does unmeasured ability explain inter-industry wage difference? The Review of Economic Studies, Vol. 59, No. 3, pp. 515-535, 1992.

[5] Katz, L. F., Loveman, G. W., Blanchflower, D. G.: A comparison of changes in the structure of wages in four OECD countries. National Bureau of Economic Research, Working Paper 4297, 1993.

[6] Tachibanaki, T.: Introduction to wage differentials: an international comparison. In: Wage differentials: an international compa-rison, Ed.: Tachibanaki, T., MacMillan Press London and St. Martin’s Press New York, Ch. 1, pp. 1-34, 1998.

[7] Ting, C. C.: A note on factor price equalization. Business and Economics Journal, Vol. 5, Issue 1, pp. 1-3, 2014.

[8] Visser, J.: ICTWSS Data base, version 5.1. Amsterdam Institute for Advanced Labour
Studies (AIAS), University of Amsterdam. September 2016.

[9] © WageIndicator 2018 -WageIndicator.org

Cite this paper

Tibor Takács. (2018) A Cross-Country Comparison of Relative Wages. International Journal of Economics and Management Systems, 3, 125-131


Copyright © 2018 Author(s) retain the copyright of this article.
This article is published under the terms of the Creative Commons Attribution License 4.0