Rising between-workplace inequalities in high-income countries

Donald Tomaskovic-Devey, Anthony Rainey, Dustin Avent-Holt, Nina Bandelj, István Boza, David Cort, Olivier Godechot, Gergely Hajdu, Martin Hällsten, Lasse Folke Henriksen, Are Skeie Hermansen, Feng Hou, Jiwook Jung, Aleksandra Kanjuo-Mrčela, Joe King, Naomi Kodama, Tali Kristal, Alena Krízková, Zoltán Lippényi, Silvia Maja MelzerEunmi Mun, Andrew Penner, Trond Petersen, Andreja Poje, Mirna Safi, Max Thaning, Zaibu Tufail

Research output: Contribution to journalArticle

2 Scopus citations

Abstract

It is well documented that earnings inequalities have risen in many high-income countries. Less clear are the linkages between rising income inequality and workplace dynamics, how within- and between-workplace inequality varies across countries, and to what extent these inequalities are moderated by national labor market institutions. In order to describe changes in the initial between- and within-firm market income distribution we analyze administrative records for 2,000,000,000+ job years nested within 50,000,000+ workplace years for 14 high-income countries in North America, Scandinavia, Continental and Eastern Europe, the Middle East, and East Asia. We find that countries vary a great deal in their levels and trends in earnings inequality but that the between-workplace share of wage inequality is growing in almost all countries examined and is in no country declining. We also find that earnings inequalities and the share of between-workplace inequalities are lower and grew less strongly in countries with stronger institutional employment protections and rose faster when these labor market protections weakened. Our findings suggest that firm-level restructuring and increasing wage inequalities between workplaces are more central contributors to rising income inequality than previously recognized.

Original languageEnglish (US)
Pages (from-to)9277-9283
Number of pages7
JournalProceedings of the National Academy of Sciences of the United States of America
Volume117
Issue number17
DOIs
StatePublished - Apr 28 2020

Keywords

  • Administrative data
  • Earnings
  • Inequality
  • Institutions
  • Workplaces

ASJC Scopus subject areas

  • General

Fingerprint Dive into the research topics of 'Rising between-workplace inequalities in high-income countries'. Together they form a unique fingerprint.

  • Cite this

    Tomaskovic-Devey, D., Rainey, A., Avent-Holt, D., Bandelj, N., Boza, I., Cort, D., Godechot, O., Hajdu, G., Hällsten, M., Henriksen, L. F., Hermansen, A. S., Hou, F., Jung, J., Kanjuo-Mrčela, A., King, J., Kodama, N., Kristal, T., Krízková, A., Lippényi, Z., ... Tufail, Z. (2020). Rising between-workplace inequalities in high-income countries. Proceedings of the National Academy of Sciences of the United States of America, 117(17), 9277-9283. https://doi.org/10.1073/pnas.1918249117