Rising between-workplace inequalities in high-income countries

Tomaskovic-Devey, Donald and Rainey, Anthony and Avent-Holt, Dustin and Bandelj, Nina and Boza, István and Cort, David and Godechot, Olivier and Hajdu, Gergely ORCID: https://orcid.org/0000-0002-8957-032X and Hällsten, Martin and Folke Henriksen, Lasse and Skeie Hermansen, Are and Hou, Feng and Jung, Jiwook and Kanjuo-Mrcela, Aleksandra and King, Joe and Kodama, Naomi and Kristal, Tali and Krízková, Alena and Lippényi, Zoltán and Maja Melzer, Silvia and Mun, Eunmi and Penner, Andrew and Petersen, Trond and Poje, Andreja and Safi, Mirna and Thaning, Max and Tufail, Zaibu (2020) Rising between-workplace inequalities in high-income countries. Proceedings of the National Academy of Sciences (PNAS). pp. 1-7. ISSN 1091-6490

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Abstract

It is well documented that earnings inequalities have risen in many high-income countries. Less clear are the linkages between rising income inequality and workplace dynamics, how within- and between-workplace inequality varies across countries, and to what extent these inequalities are moderated by national labor market institutions. In order to describe changes in the initial between- and within-firm market income distribution we analyze administrative records for 2,000,000,000+ job years nested within 50,000,000+ workplace years for 14 high-income countries in North America, Scandinavia, Continental and Eastern Europe, the Middle East, and East Asia. We find that countries vary a great deal in their levels and trends in earnings inequality but that the between-workplace share of wage inequality is growing in almost all countries examined and is in no country declining. We also find that earnings inequalities and the share of between-workplace inequalities are lower and grew less strongly in countries with stronger institutional employment protections and rose faster when these labor market protections weakened. Our findings suggest that firm-level restructuring and increasing wage inequalities between workplaces are more central contributors to rising income inequality than previously recognized.

Item Type: Article
Additional Information: This article contains supporting information online at https://www.pnas.org/lookup/suppl/ doi:10.1073/pnas.1918249117/-/DCSupplemental. The research and writing of this paper has been supported by many institutions. Monetary support from the US National Science Foundation (grant SES-1528294), the Alexander von Humboldt Foundation (grant AR8227), the European Research Council Advanced Grant(grant 340045), the Independent Research Fund Denmark (grant 5052-00143b), Swedish Forte (grant 2015-00807), the European Social Fund and state budget of the Czech Republic (grant CZ.03.1.51/0.0/0.0/15_009/0003702) institutional support: Rozvoj Výzkumné Organizace (RVO:68378025), Research Council of Norway (Grant 287016), and the French Re-search Agency (Grant ANR-17-CE41-0009-01). This paper is released to informinterested parties of research and to encourage discussion. The views expressed are those of the authors and not necessarily those of the US Census Bureau. Tabular materials presented in this paper were approved for release by the US Census Bureau's Disclosure Review Board (CBDRB-FY18-258). Yannick Savina of Sciences Po produced the figures used in the paper.
Keywords: inequality, workplaces, administrative data, earnings, institutions
Divisions: Departments > Volkswirtschaft > Finanzwissenschaft u öffentl. Wirtschaft
Version of the Document: Published
Depositing User: Gergely Hajdu
Date Deposited: 15 Apr 2020 11:16
Last Modified: 15 Apr 2020 11:16
Related URLs:
FIDES Link: https://bach.wu.ac.at/d/research/results/95293/
URI: https://epub.wu.ac.at/id/eprint/7548

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