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Recent changes in British wage inequality: Evidence from firms and occupations

Daniel Schaefer () and Carl Singleton ()
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Daniel Schaefer: School of Economics, University of Edinburgh

Authors registered in the RePEc Author Service: Daniel Schäfer

No em-dp2019-01, Economics Discussion Papers from Department of Economics, Reading University

Abstract: Using a linked employer-employee dataset covering large firms, we present new evidence on British wage inequality trends over the past two decades. Differences between firms in the average wages they paid did not drive these trends. Between 1996 and 2005, greater wage variance within firms accounted for eighty-six percent of the total increase in wage variance among employees. In the following decade, wage inequality between firms continued to increase, whereas overall wage dispersion decreased. Approximately all the contribution to inequality dynamics from estimated firm-specific factors, throughout the employee wage distribution, disappears after accounting for the changing occupational content of wages.

Keywords: wage inequality; within-firm inequality; occupational wage premiums (search for similar items in EconPapers)
JEL-codes: D22 E24 J31 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2019-04-03
New Economics Papers: this item is included in nep-eur, nep-lma and nep-mac
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http://www.reading.ac.uk/web/FILES/economics/emdp201901.pdf

Related works:
Working Paper: Recent changes in British wage inequality: Evidence from firms and occupations (2017) Downloads
Working Paper: Recent changes in British wage inequality: Evidence from firms and occupations (2017) Downloads
Working Paper: Recent Changes in British Wage Inequality: Evidence from Firms and Occupations (2017) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:rdg:emxxdp:em-dp2019-01

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