Labor Market Institutions and the Distribution of Wages: The Role of Spillover Effects

Nicole Fortin, Thomas Lemieux and Neil Lloyd

No 28375, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper examines the role of spillover effects of minimum wages and threat effects of unionization in changes in wage inequality in the United States between 1979 and 2017. A distribution regression framework is introduced to estimate both types of spillover effects. Threat effects double the contribution of de-unionization to the increase in male wage inequality. Spillover effects magnify the explanatory power of declining minimum wages to two-thirds of the increase in inequality at the bottom end of the female wage distribution.

JEL-codes: D31 J31 J51 J80 (search for similar items in EconPapers)
Date: 2021-01
New Economics Papers: this item is included in nep-his and nep-lma
Note: LS
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Citations: View citations in EconPapers (35)

Published as Nicole M. Fortin & Thomas Lemieux & Neil Lloyd, 2021. "Labor Market Institutions and the Distribution of Wages: The Role of Spillover Effects," Journal of Labor Economics, vol 39(S2), pages S369-S412.

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