Abstract
The 'fractal' nature of the rise in earnings dispersion is one of its key features. In this paper, we offer a new perspective on the causes of changes in earnings dispersion, focusing on the role of labour reallocation. We set out a framework showing that job and worker reallocation affects earnings dispersion. We quantify this using a data set comprising almost the universe of workers and employers in Maryland. The changing allocation of workers to jobs played a significant role in explaining movements in the dispersion of earnings.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 91-110 |
| Number of pages | 20 |
| Journal | Oxford Bulletin of Economics and Statistics |
| Volume | 71 |
| Issue number | 1 |
| DOIs | |
| State | Published - Feb 2009 |
ASJC Scopus subject areas
- Statistics and Probability
- Social Sciences (miscellaneous)
- Economics and Econometrics
- Statistics, Probability and Uncertainty