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Wage inequality, tasks and occupations

Author

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  • Carol A. Scotese

    (Department of Economics, VCU School of Business)

Abstract

This paper assesses the relationship between occupation attributes and changes in wage inequality finding partial support for the computerization hypothesis. While wages associated with non-routine cognitive tasks have risen; current versions of the hypothesis cannot explain the pattern of within occupation wage changes, the differential impact of various types of non-routine cognitive tasks and the declining return to tasks that complement machines. Despite significant employment shifts, occupational composition alone matters little for changes in wage inequality. Changes in wage dispersion within occupations are quantitatively just as important as wage changes between occupations for explaining wage inequality between 1980 and 2000.

Suggested Citation

  • Carol A. Scotese, 2012. "Wage inequality, tasks and occupations," Working Papers 1201, VCU School of Business, Department of Economics.
    • Handle: RePEc:vcu:wpaper:1201
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    References listed on IDEAS

    as
    1. David H. Autor & David Dorn, 2013. "The Growth of Low-Skill Service Jobs and the Polarization of the US Labor Market," American Economic Review, American Economic Association, vol. 103(5), pages 1553-1597, August.
    2. Acemoglu, Daron & Autor, David, 2011. "Skills, Tasks and Technologies: Implications for Employment and Earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 12, pages 1043-1171, Elsevier.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Rongsheng Tang & Yang Tang & Ping Wang, 2020. "Within-Job Wage Inequality: Performance Pay and Job Relatedness," NBER Working Papers 27390, National Bureau of Economic Research, Inc.
    2. Atolia Manoj & Kurokawa Yoshinori, 2021. "Entry Costs, Task Variety, and Skill Flexibility: A Simple Theory of (Top) Income Skewness," The B.E. Journal of Macroeconomics, De Gruyter, vol. 21(1), pages 97-124, January.

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    More about this item

    Keywords

    wage inequality; computerization; skill; tasks;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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