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Title:Decomposing the sources of earnings inequality: Assessing the role of reallocation PDF Logo
Authors:Andersson, Fredrik
Davis, Elizabeth E.
Freedman, Matthew L.
Lane, Julia
McCall, Brian P.
Sandusky, L. Kristin
Issue Date:2011
Series/Report no.:Discussion Paper series, Forschungsinstitut zur Zukunft der Arbeit 6182
Abstract:This paper exploits longitudinal employer-employee matched data from the U.S. Census Bureau to investigate the contribution of worker and firm reallocation to changes in earnings inequality within and across industries between 1992 and 2003. We find that factors that cannot be measured using standard cross-sectional data, including the entry and exit of firms and the sorting of workers across firms, are important sources of changes in earnings distributions over time. Our results also suggest that the dynamics driving changes in earnings inequality are heterogeneous across industries.
Subjects:inequality
linked employer-employee data
sorting
JEL:J0
J30
Persistent Identifier of the first edition:urn:nbn:de:101:1-201201103153
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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