Between Firm Changes in Earnings Inequality: The Dominant Role of Industry Effects

John Haltiwanger and James Spletzer

No 26786, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We find that most of the rising between firm earnings inequality that dominates the overall increase in inequality in the U.S. is accounted for by industry effects. These industry effects stem from rising inter-industry earnings differentials and not from changing distribution of employment across industries. We also find the rising inter-industry earnings differentials are almost completely accounted for by occupation effects. These results link together the key findings from separate components of the recent literature: one focuses on firm effects and the other on occupation effects. The link via industry effects challenges conventional wisdom.

JEL-codes: E24 J24 J31 L22 (search for similar items in EconPapers)
Date: 2020-02
New Economics Papers: this item is included in nep-bec, nep-ind, nep-lma, nep-ltv, nep-mac and nep-tid
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Citations: View citations in EconPapers (7)

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Working Paper: Between Firm Changes in Earnings Inequality: The Dominant Role of Industry Effects (2020)
Working Paper: Between Firm Changes in Earnings Inequality: The Dominant Role of Industry Effects (2020)
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