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The evolution of wage inequality within local U.S. labor markets

Author

Listed:
  • Eisenbarth, Anthony

    (University of Utah, Salt Lake City)

  • Chen, Zhou Fu

    (University of Missouri – Kansas City)

Abstract

"There are few concentrated studies on wage inequality across local labor markets at the city or metropolitan level. This paper studies the changes in wage inequality among 170 metropolitan areas by using micro-level data from the U.S. Census and American Community Survey from 1980 to 2019. We propose that shifts in the relative demand for “college-educated” or “college equivalent” workers have been persistent in both temporal and spatial dimensions; and that this persistence has contributed to the increase in wage inequality along with the rise in managerial employment. Using fixed-effects models, we find that on average, changes in managerial intensity between 1980 and 2019 accounts for 6.9% of the change in wage inequality across U.S. labor markets." (Author's abstract, IAB-Doku, © Springer-Verlag) ((en))

Suggested Citation

  • Eisenbarth, Anthony & Chen, Zhou Fu, 2022. "The evolution of wage inequality within local U.S. labor markets," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 56, pages 1-002.
    • Handle: RePEc:iab:iabjlr:v:56:i::p:a002
    DOI: 10.1186/s12651-022-00307-6
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    JEL classification:

    • B59 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Other
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • 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

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