The role of cognitive skills in explaining wage differentials between socio-economic groups

By Marieke Vandeweyer. Average wages can vary markedly between socio-economic groups. A well-known example is the difference in wages between male and female workers, the so-called gender wage gap. Other examples include the difference in wages between: native- and foreign-born workers; workers with different socio-economic backgrounds – for example those with high-skilled and low-skilled parents; workers of different ethnicities; and older and younger workers. These differences between groups of workers contribute to high overall wage inequality. More...