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Wage Inequality and Labor Rights Violations

Author

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  • Marinescu, Ioana E.

    (University of Pennsylvania)

  • Qiu, Yue

    (Temple University)

  • Sojourner, Aaron

    (Upjohn Institute for Employment Research)

Abstract

Wage inequality does not fully capture differences in job quality. Jobs also differ along other key dimensions, including the prevalence of labor rights violations. We construct novel measures of labor violation rates using data from federal agencies. Within local industries over time, a 10% increase in the average wage is associated with a 0.15% decrease in the number of violations per employee and a 4% decrease in fines per dollar of pay. Reduced labor market concentration and increased union coverage rate are also associated with reductions in labor violations. Overall, labor violations are regressive: they increase inequality in job quality.

Suggested Citation

  • Marinescu, Ioana E. & Qiu, Yue & Sojourner, Aaron, 2021. "Wage Inequality and Labor Rights Violations," IZA Discussion Papers 14112, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp14112
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    References listed on IDEAS

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    1. Ioana Marinescu, 2011. "Are Judges Sensitive to Economic Conditions? Evidence from Uk Employment Tribunals," ILR Review, Cornell University, ILR School, vol. 64(4), pages 673-698, July.
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    8. Marinescu, Ioana & Ouss, Ivan & Pape, Louis-Daniel, 2021. "Wages, hires, and labor market concentration," Journal of Economic Behavior & Organization, Elsevier, vol. 184(C), pages 506-605.
    9. Nicole Maestas & Kathleen J. Mullen & David Powell & Till von Wachter & Jeffrey B. Wenger, 2023. "The Value of Working Conditions in the United States and the Implications for the Structure of Wages," American Economic Review, American Economic Association, vol. 113(7), pages 2007-2047, July.
    10. Kerwin Kofi Charles & Matthew S. Johnson & Melvin Stephens & Do Q. Lee, 2022. "Demand Conditions and Worker Safety: Evidence from Price Shocks in Mining," Journal of Labor Economics, University of Chicago Press, vol. 40(1), pages 47-94.
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    Cited by:

    1. Dami'an Vergara, 2022. "Minimum Wages and Optimal Redistribution," Papers 2202.00839, arXiv.org, revised Dec 2022.

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    More about this item

    Keywords

    wage differentials; inequality; worker power; labor rights;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J83 - Labor and Demographic Economics - - Labor Standards - - - Workers' Rights
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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