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Inequality and Changes in Task Prices: Within and between Occupation Effects☆

In: Inequality: Causes and Consequences

Author

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  • Nicole Fortin
  • Thomas Lemieux

Abstract

This paper seeks to connect changes in the structure of wages at the occupation level to measures of the task content of jobs. We first present a simple model where skills are used to produce tasks, and changes in task prices are the underlying source of change in occupational wages. Using Current Population Survey (CPS) wage data and task measures from the O*NET, we document large changes in both the within and between dimensions of occupational wages over time, and find that these changes are well explained by changes in task prices likely induced by technological change and offshoring.

Suggested Citation

  • Nicole Fortin & Thomas Lemieux, 2016. "Inequality and Changes in Task Prices: Within and between Occupation Effects☆," Research in Labor Economics, in: Inequality: Causes and Consequences, volume 43, pages 195-226, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:rleczz:s0147-912120160000043014
    DOI: 10.1108/S0147-912120160000043014
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    Citations

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    Cited by:

    1. Lekfuangfu, Warn N. & Nakavachara, Voraprapa, 2021. "Reshaping Thailand's labor market: The intertwined forces of technology advancements and shifting supply chains," Economic Modelling, Elsevier, vol. 102(C).
    2. Diego Martínez-Navarro & Ignacio Amate-Fortes & Almudena Guarnido-Rueda, 2020. "Inequality and development: is the Kuznets curve in effect today?," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 37(3), pages 703-735, October.
    3. Francesco Bloise & Irene Brunetti & Valeria Cirillo, 2022. "Firm strategies and distributional dynamics: labour share in Italian medium-large firms," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 39(2), pages 623-655, July.
    4. Florian Hoffmann & David S. Lee & Thomas Lemieux, 2020. "Growing Income Inequality in the United States and Other Advanced Economies," Journal of Economic Perspectives, American Economic Association, vol. 34(4), pages 52-78, Fall.
    5. Vu, Tien Manh & Yamada, Hiroyuki, 2017. "Decomposing Gender Equality along the Wage Distribution in Vietnam during the Period 2002–14," AGI Working Paper Series 2017-04, Asian Growth Research Institute.
    6. Sergio P. Firpo & Nicole M. Fortin & Thomas Lemieux, 2018. "Decomposing Wage Distributions Using Recentered Influence Function Regressions," Econometrics, MDPI, vol. 6(2), pages 1-40, May.
    7. Nuarpear Lekfuangfu & Voraprapa Nakavachara, 2020. "Reshaping Thailand's Labor Market Structure: The Unified Forces of Technology and Trade," PIER Discussion Papers 123, Puey Ungphakorn Institute for Economic Research.
    8. Fana Marta & Giangregorio Luca, 2021. "Routine-biased technical change can fail: Evidence from France," JRC Working Papers on Labour, Education and Technology 2021-14, Joint Research Centre.

    More about this item

    Keywords

    Wage inequality; tasks; occupations; offshoring; technological change; J24; J31;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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