Matching, Reallocation and Changes in Earnings Dispersion
The 'fractal' nature of the rise in earnings dispersion is one of its key features. In this paper, we offer a new perspective on the causes of changes in earnings dispersion, focusing on the role of labour reallocation. We set out a framework showing that job and worker reallocation affects earnings dispersion. We quantify this using a data set comprising almost the universe of workers and employers in Maryland. The changing allocation of workers to jobs played a significant role in explaining movements in the dispersion of earnings. Copyright (c) Blackwell Publishing Ltd and the Department of Economics, University of Oxford, 2008.
Year of publication: |
2009
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Authors: | Burgess, Simon ; Lane, Julia ; McKinney, Kevin |
Published in: |
Oxford Bulletin of Economics and Statistics. - Department of Economics, ISSN 0305-9049. - Vol. 71.2009, 1, p. 91-110
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Publisher: |
Department of Economics |
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