Vox:
Wage inequality: The spatial dimension
18 July 2016
Income inequality has risen throughout the advanced world. Various explanations have been suggested for this, but these tend to focus on who you are. This column shifts the focus to where you work. Data from the US reveal that over the period 1992-2007, two-thirds of the rise in earnings dispersion was due to increased variation across establishments. Moreover, almost 80% of the increase in earnings dispersion among workers who remained at the same establishment from year to year was due to a widening of wages across establishments rather than within establishments.
This article was published online by the Vox on July 18, 2016
Link to article here
Related publications
It's Where You Work: Increases in Earnings Dispersion across Establishments and Individuals in the US, Erling Barth, Alex Bryson, James C. Davis and Richard Freeman, Centre for Economic Performance Discussion Paper No.1311, November 2014
Related links
Alex Bryson webpage
Richard Freeman webpage
Labour Markets Programme webpage