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.

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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.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers). Complete list of all GLO DPs – downloadable for free.

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