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Sources of wage inequality

Anders Akerman, Elhanan Helpman, Oleg Itskhoki, Marc-Andreas Muendler and Stephen Redding

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Recent theories of firm heterogeneity emphasize between-firm wage differences as a new mechanism through which trade can affect wage inequality. Using linked employer-employee data for Sweden, we show that many of the stylized facts about wage inequality found in Helpman et al. (2012) for Brazil also hold for Sweden. Much of overall wage inequality arises within sector-occupations and for workers with similar observable characteristics. One notable difference is a smaller contribution from between-firm differences in wages in Sweden, which could reflect the influence of Swedish labor market institutions in dampening the scope for variation in wages between firms through collective wage agreements.

JEL-codes: F13 F16 J24 J31 (search for similar items in EconPapers)
Date: 2013-05
New Economics Papers: this item is included in nep-lam
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Citations: View citations in EconPapers (48)

Published in American Economic Review, May, 2013, 103(3), pp. 214-219. ISSN: 0002-8282

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Journal Article: Sources of Wage Inequality (2013) Downloads
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