Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/215386 
Year of Publication: 
2020
Series/Report no.: 
IZA Discussion Papers No. 12990
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We find that most of the rising between firm earnings inequality that dominates the overall increase in inequality in the U.S. is accounted for by industry effects. These industry effects stem from rising inter-industry earnings differentials and not from changing distribution of employment across industries. We also find the rising inter-industry earnings differentials are almost completely accounted for by occupation effects. These results link together the key findings from separate components of the recent literature: one focuses on firm effects and the other on occupation effects. The link via industry effects challenges conventional wisdom.
Subjects: 
inequality
industry
occupation
JEL: 
J3
Document Type: 
Working Paper

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