Establishment Turnover and the Evolution of Wage Inequality
AbstractWe consider the determinants of the evolution of wage inequality in the context of the literature on entry and exit of establishments. Using several measures of wage inequality (overall, within-group, and between-groups), we conclude that shutdowns reduce overall and within-group inequality because they eliminate low-pay jobs. Startups increase wage inequality between age and, especially, education groups, because newly-created establishments make staffing choices that are different from those made by continuously-operating establishments and establishments that shut down.
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Bibliographic InfoPaper provided by Universidade do Porto, Faculdade de Economia do Porto in its series CEF.UP Working Papers with number 1202.
Length: 30 pages
Date of creation: May 2012
Date of revision:
Wage Inequality; Labor Demand; Establishment Turnover.;
Find related papers by JEL classification:
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-06-05 (All new papers)
- NEP-LAB-2012-06-05 (Labour Economics)
- NEP-LMA-2012-06-05 (Labor Markets - Supply, Demand, & Wages)
- NEP-LTV-2012-06-05 (Unemployment, Inequality & Poverty)
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