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The Role of Establishments and the Concentration of Occupations in Wage Inequality

Author

Listed:
  • Handwerker, Elizabeth

    (U.S. Bureau of Labor Statistics)

  • Spletzer, James R.

    (Independent Researcher)

Abstract

This paper uses the microdata of the Occupational Employment Statistics (OES) Survey to assess the contribution of occupational concentration to wage inequality between establishments and its growth over time. We show that occupational concentration plays an important role in wage determination for workers, in a wide variety of occupations, and can explain some establishment-level wage variation. Occupational concentration is increasing during the 2000-2011 time period, although much of this change is explained by other observable establishment characteristics. Overall, occupational concentration can help explain a small amount of wage inequality growth between establishments during this time period.

Suggested Citation

  • Handwerker, Elizabeth & Spletzer, James R., 2015. "The Role of Establishments and the Concentration of Occupations in Wage Inequality," IZA Discussion Papers 9294, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp9294
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    Cited by:

    1. Azar, José & Marinescu, Ioana & Steinbaum, Marshall & Taska, Bledi, 2020. "Concentration in US labor markets: Evidence from online vacancy data," Labour Economics, Elsevier, vol. 66(C).

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    More about this item

    Keywords

    occupational concentration; establishments; wage inequality; employers; employer-employee microdata;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • M50 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - General

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