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Wage Inequality and Labor Rights Violations

Author

Listed:
  • Ioana Marinescu
  • Yue Qiu
  • Aaron Sojourner

Abstract

Wage inequality does not fully capture differences in job quality. Jobs also differ along other key dimensions, including the prevalence of labor rights violations. We construct novel measures of labor violation rates using data from federal agencies. Within local industries over time, a 10% increase in the average wage is associated with a 0.15% decrease in the number of violations per employee and a 4% decrease in fines per dollar of pay. Reduced labor market concentration and increased union coverage rate are also associated with reductions in labor violations. Overall, labor violations are regressive: they increase inequality in job quality.

Suggested Citation

  • Ioana Marinescu & Yue Qiu & Aaron Sojourner, 2021. "Wage Inequality and Labor Rights Violations," NBER Working Papers 28475, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:28475
    Note: LE LS
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    Cited by:

    1. Arezoo Jafari & Priscila De Azevedo Drummond & Shawn Bhimani & Dominic Nishigaya & Aidong Adam Ding & Amy Farrell & Kayse Lee Maass, 2024. "Enhancing detection of labor violations in the agricultural sector: A multilevel generalized linear regression model of H-2A violation counts," PLOS ONE, Public Library of Science, vol. 19(5), pages 1-25, May.
    2. Dami'an Vergara, 2022. "Minimum Wages and Optimal Redistribution," Papers 2202.00839, arXiv.org, revised Dec 2022.
    3. Garofalo, Antonio & Bruno, Emma & D'Avino, Maria & Ferraro, Aniello & Punzo, Gennaro, 2025. "Employee compensation in European regions: A spatial analysis of short- and long-term effects," Structural Change and Economic Dynamics, Elsevier, vol. 74(C), pages 303-314.

    More about this item

    JEL classification:

    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J83 - Labor and Demographic Economics - - Labor Standards - - - Workers' Rights
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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