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Within occupation wage dispersion and the task content of jobs

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  • Lucas van der Velde

    (Group for Research in Applied Economics (GRAPE)
    Warsaw School Economics)

Abstract

The relation between income inequality and technological progress has many chapters, of which the most recent corresponds to the task content of jobs. Proponents of this theory suggest that falling prices of computational power coupled with the increasing power of computers leads to an increasing substitution of workers with computers and a hollowing of the middle of the income distribution. While empirical analysis on task content of jobs explain inequality between occupations, we test whether the framework can also foster our understanding of wage dispersion within occupations. Using European data, we obtain estimates of wage dispersion and residual wage dispersion for each occupation and relate it to the task content. The results suggest that non-routine intensive occupations presented greater wage dispersion, even after controlling for a variety of factors.

Suggested Citation

  • Lucas van der Velde, 2017. "Within occupation wage dispersion and the task content of jobs," GRAPE Working Papers 22, GRAPE Group for Research in Applied Economics.
    • Handle: RePEc:fme:wpaper:22
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    References listed on IDEAS

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    Cited by:

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    3. Christenko, Aleksandr, 2022. "Automation and occupational mobility: A task and knowledge-based approach," Technology in Society, Elsevier, vol. 70(C).
    4. Fana Marta & Giangregorio Luca, 2021. "Routine-biased technical change can fail: Evidence from France," JRC Working Papers on Labour, Education and Technology 2021-14, Joint Research Centre.

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    More about this item

    Keywords

    wage inequality; occupation; task content; routinization;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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