Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/161207
Authors: 
Mak, Eric
Siow, Aloysius
Year of Publication: 
2017
Series/Report no.: 
IZA Discussion Papers 10584
Abstract: 
Integrating Roy with Becker, this paper studies occupational choice and matching in the labor market. Our model generates occupation earnings distributions which are right skewed, have firm fixed effects, and large changes in aggregate earnings inequality without significant changes in within firm inequality. The estimated model fits the earnings distribution both across and within firms in Brazil in 1999. It shows that the recent decrease in aggregate Brazilian earnings inequality is largely due to the increase in her educational attainment over the same years. A simulation of skilled biased technical change in the model also qualitatively fits the recent changes in earnings inequality in the United States.
Subjects: 
occupational choice
matching
earnings distribution
inequality
JEL: 
J31
Document Type: 
Working Paper

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