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The Drivers Of Labor Income Inequality — A Literature Review

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  • RAFAL KIERZENKOWSKI

    (Economics Department, OECD, 2 Rue André Passal, 75775 Paris Cedex 16, France)

  • ISABELL KOSKE

    (Economics Department, OECD, 2 Rue André Passal, 75775 Paris Cedex 16, France)

Abstract

Despite a general trend of increasing labor income inequality, there have been differences in the timing, intensity and even direction of these changes across OECD countries. These stylized facts have led to numerous studies about the main determinants of labor income inequality and, as a result, a significant revision of the previous consensus about the key drivers. The most researched channels include skill-biased technological change, international trade, immigration, education as well as the role of labor market policies and institutions.

Suggested Citation

  • Rafal Kierzenkowski & Isabell Koske, 2013. "The Drivers Of Labor Income Inequality — A Literature Review," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 4(01), pages 1-32.
    • Handle: RePEc:wsi:jicepx:v:04:y:2013:i:01:n:s179399331350004x
    DOI: 10.1142/S179399331350004X
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    More about this item

    Keywords

    Income inequality; labor income; globalization; trade; immigration; technological change; education policy; labor market policy; D63; F16; I24; J31; J58; 033;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J58 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Public Policy

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