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Outsourcing, Occupationally Homogeneous Employers, and Wage Inequality in the United States

In: Wage Dynamics in the 21st Century

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  • Elizabeth Weber Handwerker

Abstract

This paper develops measures of the occupational homogeneity of employers as indicators of outsourcing. Findings are threefold. First, wages are strongly related to occupational homogeneity, particularly for workers in low-wage occupations. Second, by some measures, workers—particularly those in higher-wage occupations—saw their employing establishments become more occupationally homogeneous during 2004–19. Third, changes in the occupational homogeneity of workplaces contributed to growing wage inequality among workers over the first part of this period. The growing sorting and segregation of workers by occupation into different employers is an important part of wage inequality.
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Suggested Citation

  • Elizabeth Weber Handwerker, 2021. "Outsourcing, Occupationally Homogeneous Employers, and Wage Inequality in the United States," NBER Chapters, in: Wage Dynamics in the 21st Century, pages 173-203, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberch:14925
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    Cited by:

    1. Van Phan & Carl Singleton & Alex Bryson & John Forth & Felix Ritchie & Lucy Stokes & Damian Whittard, 2023. "Accounting for firms in gender-ethnicity wage gaps throughout the earnings distribution," Economics Discussion Papers em-dp2023-16, Department of Economics, University of Reading.

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