Recent changes in British wage inequality: Evidence from firms and occupations
Daniel SchÃ¤fer () and
Carl Singleton ()
Additional contact information
Daniel SchÃ¤fer: https://sites.google.com/site/danielschaefereconomics/
ESE Discussion Papers from Edinburgh School of Economics, University of Edinburgh
Using a dataset covering a large sample of employees and their mostly very large employers, we study the dynamics of British wage inequality over the past two decades. Contrary to other studies, we find little evidence that recent increases in inequality have been driven by differences in the average wages paid by firms. Instead greater dispersion within firms can account for the majority of changes to the wage distribution. After controlling for the changing occupational content of employee wages, the role of average firm residual differences is approximately zero; the modestly increasing trend in between-firm wage inequality is explained by a combination of changes in between-occupation inequality and the occupational specialisation of firms. It is possible that previous studies, which assign some of the importance of changes in the between-firm component to industry, have misrepresented a significant role for occupations. These results are robust across measures of hourly, weekly and annual wages.
Keywords: wage inequality; within-firm inequality; occupational wage premium (search for similar items in EconPapers)
JEL-codes: E24 J31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-lma and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (3) Track citations by RSS feed
Downloads: (external link)
Working Paper: Recent changes in British wage inequality: Evidence from firms and occupations (2017)
Working Paper: Recent Changes in British Wage Inequality: Evidence from Firms and Occupations (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:edn:esedps:277
Access Statistics for this paper
More papers in ESE Discussion Papers from Edinburgh School of Economics, University of Edinburgh 31 Buccleuch Place, EH8 9JT, Edinburgh. Contact information at EDIRC.
Bibliographic data for series maintained by Research Office ().