Sectoral Shift, Job Mobility and Wage Inequality

Shouyong Shi and Florian Hoffmann
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Florian Hoffmann: University of British Columbia

No 123, 2014 Meeting Papers from Society for Economic Dynamics

Abstract: In the last few decades there is a clear shift of the U.S. economy from the non-service sector to the service sector. We document the patterns of changes in the employment share in services, the transition rates of workers between the two sectors and between different employment status, the relative wage income between the sectors, and wage inequality. To understand these changes jointly, we construct a dynamic equilibrium model of a two-sector economy where workers search both on the job and in unemployment. Assuming that the value-added per labor has been increasing in services relative to non-services, we estimate the model and make inferences on how the sectoral shift interacts with skill accumulation and labor market frictions.

Date: 2014
New Economics Papers: this item is included in nep-dge and nep-ltv
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Related works:
Working Paper: Sectoral Shift, Job Mobility and Wage Inequality (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:red:sed014:123

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