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Sectoral trends in earnings inequality and employment International trade, skill-biased technological change, or labour market institutions?

Author

Listed:
  • Stefan Thewissen
  • Chen Wang
  • Olaf van Vliet

Abstract

Current studies addressing the rise in inequality confine themselves to country-level developments. This paper delineates trends in earnings inequality and employment at the sectoral level for eight LIS countries between 1985-2005. Earnings inequality mainly manifests itself within rather than between sectors. Yet, there is significant variation in the level of inequality across sectors whilst the differences between countries in intrasectoral inequality are much less pronounced. A general rise in intrasectoral earnings dispersion and a shift from the manufacturing industry towards the financial sector are perceptible. Crosssectional pooled time-series analyses indicate significant associations between the exposure to import and decreased employment within sectors, whilst no evidence is found for relations between earnings inequality and international trade or skill-biased technological change.

Suggested Citation

  • Stefan Thewissen & Chen Wang & Olaf van Vliet, 2013. "Sectoral trends in earnings inequality and employment International trade, skill-biased technological change, or labour market institutions?," LIS Working papers 595, LIS Cross-National Data Center in Luxembourg.
    • Handle: RePEc:lis:liswps:595
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Bussolo, Maurizio & Cruz, Marcio & Osorio Rodarte, Israel, 2014. "Sectoral Wage Bill Database," Conference papers 332464, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Halvarsson, Daniel & Korpi, Martin & Wennberg, Karl, 2016. "Entrepreneurship and Income Inequality," Ratio Working Papers 281, The Ratio Institute.
    3. Halvarsson, Daniel & Korpi, Martin & Wennberg, Karl, 2018. "Entrepreneurship and income inequality," Journal of Economic Behavior & Organization, Elsevier, vol. 145(C), pages 275-293.
    4. Boris Cournède & Oliver Denk & Peter Hoeller, 2015. "Finance and Inclusive Growth," OECD Economic Policy Papers 14, OECD Publishing.
    5. Oliver Denk, 2015. "Financial sector pay and labour income inequality: Evidence from Europe," OECD Economics Department Working Papers 1225, OECD Publishing.
    6. Stefan Thewissen & Olaf Vliet & Chen Wang, 2018. "Taking the Sector Seriously: Data, Developments, and Drivers of Intrasectoral Earnings Inequality," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 138(3), pages 1023-1048, August.
    7. Huang, Kaixing & Yan, Wenshou & Sim, Nicholas & Guo, Yuqing & Xie, Fang, 2022. "Can trade explain the rising trends in income inequality? Insights from 40 years of empirical studies," Economic Modelling, Elsevier, vol. 107(C).

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    More about this item

    Keywords

    Earnings inequality; sectoral approach; globalisation; skill biased technological change; income inequality;
    All these keywords.

    JEL classification:

    • D30 - Microeconomics - - Distribution - - - General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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