Service Industries, Two-Working Spouse Families, and the Distribution of Earnings in Metropolitan Areas

Stephen Nord

The Review of Economics and Statistics, 1990, vol. 72, issue 4, 692-96

Abstract: The results of this analysis suggest that employment in service industries acts as a double-edged sword on earnings inequality. On the one hand, we find that as the percentage of total civilian employment in service industries rises, the inequality in earnings among individuals increases. On the other hand, as the concentration of employment in service industries rises, the inequality in earnings among individuals intact husband-wife families is found to decrease. The results of this analysis suggests that the latter is largely the result of service industries providing jobs that enable both husband and wife to work outside the home. Copyright 1990 by MIT Press.

Date: 1990
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