Wage and Earnings Inequality Between and Within Occupations: The Role of Labor Supply

Andres Erosa, Luisa Fuster, Gueorgui Kambourov and Richard Rogerson

No 31665, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We document systematic differences in wage and earnings inequality between and within occupations and show that these differences are intimately related to systematic differences in labor supply across occupations. We then develop a variant of a Roy model in which earnings are a non-linear function of hours, with the extent of this non-linearity differing across occupations. In our theory, the interplay between heterogeneity in tastes for leisure and occupational differences in non-linearities affects the sorting of workers. Moreover, this interplay is crucial to account for the facts on the distributions of hours, wages, and earnings within and across occupations.

JEL-codes: E20 J2 J3 (search for similar items in EconPapers)
Date: 2023-09
New Economics Papers: this item is included in nep-lma
Note: EFG
References: Add references at CitEc
Citations:

Published as Andrés Erosa & Luisa Fuster & Gueorgui Kambourov & Richard Rogerson, 2024. "Wage and earnings inequality between and within occupations: The role of labor supply," Journal of Monetary Economics, .

Downloads: (external link)
http://www.nber.org/papers/w31665.pdf (application/pdf)
Access to the full text is generally limited to series subscribers, however if the top level domain of the client browser is in a developing country or transition economy free access is provided. More information about subscriptions and free access is available at http://www.nber.org/wwphelp.html. Free access is also available to older working papers.

Related works:
Journal Article: Wage and earnings inequality between and within occupations: The role of labor supply (2024)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:31665

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w31665
The price is Paper copy available by mail.

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().