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Industrial Change and Wage Inequality: Evidence from the Steel Industry

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  • Patricia Beeson
  • Lara Shore-Sheppard
  • Kathryn Shaw

Abstract

The empirical analysis in this paper, which draws on Current Population Survey data, indicates that structural decline in the steel industry during the 1980s markedly affected the distribution of wages both in the industry and in steel-producing communities. The steelworker wage distribution experienced both a drop in the mean and an increase in the variance, becoming very similar to the distribution of wages in other durable goods manufacturing industries. Declines in steel employment substantially increased wage inequality in steel-producing communities, even among workers not employed in steel.

Suggested Citation

  • Patricia Beeson & Lara Shore-Sheppard & Kathryn Shaw, 2001. "Industrial Change and Wage Inequality: Evidence from the Steel Industry," ILR Review, Cornell University, ILR School, vol. 54(2A), pages 466-483, March.
    • Handle: RePEc:sae:ilrrev:v:54:y:2001:i:2a:p:466-483
    DOI: 10.1177/001979390105400225
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    References listed on IDEAS

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    1. Levernier, William & Partridge, Mark D. & Rickman, Dan S., 1998. "Differences in Metropolitan and Nonmetropolitan U.S. Family Income Inequality: A Cross-County Comparison," Journal of Urban Economics, Elsevier, vol. 44(2), pages 272-290, September.
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    5. Rebecca M. Blank & David Card, 1993. "Poverty, Income Distribution, and Growth: Are They Still Connected," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 24(2), pages 285-340.
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    Cited by:

    1. Nicolas Fleury & Fabrice Gilles, 2012. "MOBILITES INTERGENERATIONNELLES DE CAPITAL HUMAIN ET RESTRUCTURATIONS INDUSTRIELLES. UNE EVALUATION POUR LE CAS DE LA France, 1946-1999," Working Papers hal-00988949, HAL.
    2. W. D. McCausland & F. Summerfield & I. Theodossiou, 2020. "The Effect of Industry-Level Aggregate Demand on Earnings: Evidence from the US," Journal of Labor Research, Springer, vol. 41(1), pages 102-127, June.
    3. Paul Beaudry & David A. Green & Benjamin Sand, 2007. "Spill-Overs from Good Jobs," NBER Working Papers 13006, National Bureau of Economic Research, Inc.
    4. Patricia Beeson & Fredrick Tannery, 2004. "The Impact of Industrial Restructuring on Earnings Inequality: The Decline of Steel and Earnings in Pittsburgh," Growth and Change, Wiley Blackwell, vol. 35(1), pages 21-41, February.
    5. Stephan D. Whitaker, 2016. "Industrial Composition and Intergenerational Mobility," Working Papers (Old Series) 1533R, Federal Reserve Bank of Cleveland, revised 22 Oct 2020.
    6. Black, Dan A. & McKinnish, Terra G. & Sanders, Seth G., 2003. "Does the availability of high-wage jobs for low-skilled men affect welfare expenditures? Evidence from shocks to the steel and coal industries," Journal of Public Economics, Elsevier, vol. 87(9-10), pages 1921-1942, September.
    7. Sargent, Thomas & Ljungqvist, Lars, 2002. "The European Employment Experience," CEPR Discussion Papers 3543, C.E.P.R. Discussion Papers.

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