Tuesday, May 31, 2005

[IWS] EuroStat: Earnings in industry and services in 2002 [30 May 2005]

IWS Documented News Service
_______________________________
Institute for Workplace Studies                 Professor Samuel B. Bacharach
School of Industrial & Labor Relations          Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor                  Stuart Basefsky
New York, NY 10016                      Director, IWS News Bureau
________________________________________________________________________

68/2005 - 30 May 2005
Earnings in industry and services in 2002
Average annual earnings varied significantly across the EU25
http://epp.eurostat.cec.eu.int/pls/portal/docs/PAGE/PGP_PRD_CAT_PREREL/PGE_CAT_PREREL_YEAR_2005/PGE_CAT_PREREL_YEAR_2005_MONTH_05/3-30052005-EN-AP.PDF

In 2002, in the EU25, average annual earnings in industry and services were 26 800 euro. Amongst the Member
States the highest annual average earnings were recorded in the United Kingdom (36 200 euro), Luxembourg
(35 000 euro), Germany (34 600 euro), Ireland (30 800 euro), Sweden (30 200 euro) and the Netherlands
(30 100 euro), and the lowest in Latvia (3 200 euro), Lithuania (3 600 euro), Estonia (4 400 euro) and Slovakia
(5 000 euro).

It should be noted, however, that the annual earnings for those Member States outside the euro-zone are affected
by the exchange rate of their national currency against the euro in 2002. In addition, earnings in euro do not reflect
differences in employees' purchasing power, because they do not take into account differences in price levels
between the Member States. In terms of Purchasing Power Standards3 (PPS), average annual earnings were
highest in 2002 in Luxembourg (34 200 PPS) , Germany (33 500 PPS) and the United Kingdom (31 500 PPS)
and lowest in Latvia (6 400 PPS), Lithuania (7 300 PPS) and Estonia (8 500 PPS). The comparison of earnings
in PPS shows a much smaller gap between Member States than the comparison in euro. While the ratio between
the Member States with the highest and lowest earnings in euro was more than ten to one, the ratio for earnings in
PPS was five to one.

This information is published by Eurostat, the Statistical Office of the European Communities, based on the
results of the 2002 Structure of earnings survey4. No data are available for Greece, Malta and Portugal. The level
of earnings is an important feature of the labour market. Further information, however, would be needed for a more
thorough study of labour costs. On the one hand, employees' earnings represent only a part of labour costs, while
on the other hand, labour itself is difficult to compare from country to country, since factors such as the structure of
the economy, skill levels, etc, have to be taken into account.

Differences in average earnings between women and men

In the EU25 as a whole, annual average earnings for women were about three quarters those for men (21 400 euro
compared to 29 900 euro). The relative differences were greatest in the United Kingdom, Denmark and Cyprus,
where on average annual earnings for women were more than 30% lower than for men. The smallest differences
were recorded in Slovenia, Hungary, Poland, Lithuania, Belgium, Sweden and Finland, where earnings for
women were less than 20% lower than for men.
It should be noted, however, that women and men have different employment characteristics. Firstly, women and
men do not have the same breakdown of employment across branches, and do not occupy the same jobs.
Secondly, working women tend to be younger, and as a result, on average, they have less seniority and less of an
opportunity to be in management positions. This means that the differences observed in average earnings do not
necessarily reflect a gap in pay between women and men occupying the same job with the same level of seniority.
Differences in the number of hours worked, linked to part-time and full-time jobs, do not affect the averages, as the
figures relate to full-time equivalents.

Large gaps in average earnings linked to level of education

In the EU25, annual average earnings for those with lower secondary education were 20 400 euro compared to
26 000 euro for those with upper secondary education and 41 100 euro for those having completed university
education or equivalent. The relative differences between those with upper secondary education and those having
completed university education were particularly high in the new Member States with the exception of Cyprus.

AND MORE...including TABLES....
_____________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.

****************************************
Stuart Basefsky                 *
Director, IWS News Bureau               *
Institute for Workplace Studies *
Cornell/ILR School                      *
16 E. 34th Street, 4th Floor            *
New York, NY 10016                      *
                                        *
Telephone: (607) 255-2703               *
Fax: (607) 255-9641                     *
E-mail: smb6@cornell.edu                *
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