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The Occupational Structures of Low- and High-Wage Service Sector Establishments

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  • Eliza Forsythe

    (University of Illinois at Urbana-Champaign)

Abstract

The occupational structure of an establishment provides a description of its production process by detailing the distribution and relative intensity of tasks performed. In this paper, I investigate whether there are substantive differences in the occupational structures of low- and high-wage service sector establishments. I show that low-wage establishments organize production to use less labor in professional occupations compared to high-wage establishments operating in the same local-labor market and industry. In addition, low-wage establishments employ fewer individuals in information technology occupations, employ fewer managers, and have substantially wider supervisory spans of control. These results indicate that, despite operating in the same narrowly defined labor and product markets, low-wage establishments organize production to less intensively use labor in skilled occupations.

Suggested Citation

  • Eliza Forsythe, 2018. "The Occupational Structures of Low- and High-Wage Service Sector Establishments," Upjohn Working Papers 18-292, W.E. Upjohn Institute for Employment Research.
    • Handle: RePEc:upj:weupjo:18-292
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    1. Sophie Kelmenson, 2023. "Between the farm and the fork: job quality in sustainable food systems," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 40(1), pages 317-358, March.

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    More about this item

    Keywords

    Occupations; Wage Inequality; Organization of Production; Service Industry;
    All these keywords.

    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
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production

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