Accounting for the Permanent vs. Temporary Wage Gap among Young Adults: Three European Countries in Perspective

In this paper we analyse wage differentials among young adults using the Statistics on Income and Living Conditions survey data for Italy, France and Germany in 2009. Deploying a Recentered Influence Function -regression plus reweighting
estimation technique we investigate the contribution of personal and job characteristics to wage differentials across the wage distribution. Our results indicate that the unexplained component of the gap remains very large in Italy across the whole distribution. The unexplained effect weakens in France for high-paid employees whereas it is not significant in Germany.