Wage Inequality and Labor Rights Violations

Ioana Marinescu, Yue Qiu () and Aaron Sojourner
Additional contact information
Yue Qiu: Temple University

No 14112, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Wage inequality does not fully capture differences in job quality. Jobs also differ along other key dimensions, including the prevalence of labor rights violations. We construct novel measures of labor violation rates using data from federal agencies. Within local industries over time, a 10% increase in the average wage is associated with a 0.15% decrease in the number of violations per employee and a 4% decrease in fines per dollar of pay. Reduced labor market concentration and increased union coverage rate are also associated with reductions in labor violations. Overall, labor violations are regressive: they increase inequality in job quality.

Keywords: wage differentials; inequality; worker power; labor rights (search for similar items in EconPapers)
JEL-codes: J28 J31 J32 J33 J83 K31 K42 (search for similar items in EconPapers)
Pages: 50 pages
Date: 2021-02
New Economics Papers: this item is included in nep-lab and nep-law
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Working Paper: Wage Inequality and Labor Rights Violations (2021)
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