Matching, reallocation and changes in earnings dispersion

Simon Burgess, Julia Lane, Kevin McKinney

Research output: Contribution to journalArticle

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 languageEnglish (US)
Pages (from-to)91-110
Number of pages20
JournalOxford Bulletin of Economics and Statistics
Volume71
Issue number1
DOIs
StatePublished - Feb 2009

ASJC Scopus subject areas

  • Statistics and Probability
  • Social Sciences (miscellaneous)
  • Economics and Econometrics
  • Statistics, Probability and Uncertainty

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