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Rising Top, Falling Bottom: Industries and Rising Wage Inequality

John Haltiwanger, Henry R. Hyatt and James R. Spletzer

American Economic Review, 2024, vol. 114, issue 10, 3250-83

Abstract: Most of the rise in overall earnings inequality from 1996 to 2018 is accounted for by rising between-industry dispersion. The contribution of industries is right-skewed with the top 10 percent of four-digit NAICS industries dominating. The top 10 percent are clustered in high-paying high-tech and low-paying retail sectors. In the top industries, high-wage workers are increasingly sorted to high-wage industries with rising industry premia. In the bottom industries, low-wage workers are increasingly sorted into low-wage industries, with rising employment and falling industry wage premia.

JEL-codes: J23 J24 J31 L25 M52 (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (1)

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DOI: 10.1257/aer.20221574

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