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

Author

Listed:
  • Anthony Eisenbarth

    (University of Utah)

  • Zhuo Fu Chen

    (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.

Suggested Citation

  • Anthony Eisenbarth & Zhuo Fu Chen, 2022. "The evolution of wage inequality within local U.S. labor markets," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 56(1), pages 1-25, December.
    • Handle: RePEc:spr:jlabrs:v:56:y:2022:i:1:d:10.1186_s12651-022-00307-6
    DOI: 10.1186/s12651-022-00307-6
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    More about this item

    Keywords

    Wage inequality; Labor markets; Labor demand;
    All these keywords.

    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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