Between-Class Earnings Inequality in 30 European Countries A Regression-Based Decomposition

This article studies earnings inequality between social classes across 30 European countries. Class inequality in earnings is found across the board although there are some exceptions. however, the degree of class inequality varies strongly across countries being larger in Western and Southern European countries and smaller in Eastern and Northern European countries. Furthermore, we find that differences in class composition in terms of observed characteristics associated with earnings account for a substantial proportion of these between-class differences. Differences between classes in the returns to education and other characteristics play less of a role. In all these respects there is a sizeable cross-national variation. This points to important differences between countries in how earnings are structured by social class.

Automated summary

This article examines earnings inequality between social classes in 30 European countries, finding that Western and Southern European countries exhibit higher levels of class inequality compared to Eastern and Northern European countries. Variations in observed characteristics associated with earnings contribute significantly to between-class differences, while differences in returns to education and other characteristics play a lesser role. The findings highlight significant cross-national variations in how earnings are structured by social class.