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


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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.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Proceedings of the National Academy of Sciences (PNAS)
Citation Index SCI
Language English
Title Rising between-workplace inequalities in high-income countries
Year 2020
Reviewed? Y
URL https://www.pnas.org/content/early/2020/04/07/1918249117
DOI https://doi.org/10.1073/pnas.1918249117
Open Access Y
Open Access Link https://www.pnas.org/content/pnas/early/2020/04/07/1918249117.full.pdf
JEL J31, D63

Associations

People
Hajdu, Gergely (Details)
External
Avent-Holt, Dustin (Augusta University, United States/USA)
Bandelj, Nina (University of California, Irvine, United States/USA)
Boza, István (Central European University, Hungary)
Cort, David (University of Massachusetts, United States/USA)
Folke Henriksen, Lasse (Copenhagen Business School, Denmark)
Godechot, Olivier (Sciences Po, France)
Hällsten, Martin (Stockholm University, Sweden)
Hou, Feng (Statistics Canada, Canada)
Jung, Jiwook (University of Illinois, United States/USA)
Kanjuo-Mrcela, Aleksandra (University of Ljubljana, Slovenia)
King, Joe (Institute for Defense Analyses, United States/USA)
Kodama, Naomi (Nihon University, Japan)
Kristal, Tali (University of Haifa, Israel)
Krízková, Alena (Czech Academy of Sciences, Czech Republic)
Lippényi, Zoltán (University of Groningen, Netherlands)
Maja Melzer, Silvia (University of Barcelona, Spain)
Mun, Eunmi (University of Illinois, United States/USA)
Penner, Andrew (University of California, United States/USA)
Petersen, Trond (University of California, Berkeley, United States/USA)
Poje, Andreja (Association of Free Trade Unions of Slovenia, Slovenia)
Rainey, Anthony (University of Massachusetts, United States/USA)
Safi, Mirna (Sciences Po, France)
Skeie Hermansen, Are (University of Oslo, Finland)
Thaning, Max (Stockholm University, Sweden)
Tomaskovic-Devey, Donald (University of Massachusetts, United States/USA)
Tufail, Zaibu (University of California, Irvine, United States/USA)
Organization
Institute for Public Sector Economics IN (Details)
Research areas (ÖSTAT Classification 'Statistik Austria')
5339 Economic analyses (Details)
5407 Ethics and social sciences (Details)
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