Matching, Reallocation and Changes in Earnings Dispersion*

Simon Burgess (), Julia Lane and Kevin McKinney

Oxford Bulletin of Economics and Statistics, 2009, vol. 71, issue 1, 91-110

Abstract: The ‘fractal’ nature of the rise in earnings dispersion is one of its key features. In this paper, we offer a new perspective on the causes of changes in earnings dispersion, focusing on the role of labour reallocation. We set out a framework showing that job and worker reallocation affects earnings dispersion. We quantify this using a data set comprising almost the universe of workers and employers in Maryland. The changing allocation of workers to jobs played a significant role in explaining movements in the dispersion of earnings.

Date: 2009
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https://doi.org/10.1111/j.1468-0084.2008.00519.x

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Persistent link: https://EconPapers.repec.org/RePEc:bla:obuest:v:71:y:2009:i:1:p:91-110

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