The analyses show that there is a correlation between low-wage shares and capacity to pay. The correlation depends on the indicator used for capacity to pay (wage costs as a share of factor income vs factor income per man-year). The report shows that (i) low-wage share decreases markedly with increased factor income per man-year, (ii) low-wage share decreases markedly with firms' size and unionization rate, (iii) educational composition has only a modest influence on the variation in the low-wage share between industries and (iv) geographical centrality of firms has different implications for the low-wage share in various industries, but with a tendency for the low-wage share to decrease with a higher the degree of centrality.
Correlation between low wages and capacity to pay
The report studies statistical relationships between low wages and firms' capacity to pay. The report shows that the proportion of employees with low wages and firms' capacity to pay varies substantially between and within industries.
Reports 2024/17
Published: 17 June 2024
ISBN (electronic):978-82-587-1977-6
ISBN (electronic):978-82-587-1977-6