Publication Type

Journal Article

Version

submittedVersion

Publication Date

10-2005

Abstract

This paper explores the long-run relationship between institutions and wage outcomes in Europe and its periphery. I find that cities that exercised stronger institutional protection of private property experienced: (i) higher levels of both skilled and unskilled real wages, as well as (ii) lower levels of inequality as measured by the skilled-unskilled wage ratio. While the first result corroborates existing work on the positive growth effects of better institutions, the second finding is more novel to the literature. Some explanations are proposed for how stronger institutions can cause an increase in the relative supply of skilled workers, thus lowering wage inequality.

Keywords

European cities, Institutions, Wage inequality

Discipline

Economics | Growth and Development | International Economics

Research Areas

International Economics

Publication

Explorations in Economic History

Volume

42

Issue

4

First Page

547

Last Page

566

ISSN

0014-4983

Identifier

10.1016/j.eeh.2005.02.004

Publisher

Elsevier

Copyright Owner and License

Authors

Additional URL

https://doi.org/10.1016/j.eeh.2005.02.004

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