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The Wage Curve Across the Wealth Distribution

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  • , Stone Center

    (The Graduate Center/CUNY)

  • Iacono, Roberto

    (Norwegian University of Science and Technology)

  • Ranaldi, Marco

Abstract

This paper studies the relationship between wage and unemployment rate across the wealth distribution. Using microdata from Norway covering the entire Norwegian population of residents between 2000 and 2015, we introduce four novel findings on this relationship. First, the share of unemployed individuals belonging to the bottom decile of the gross wealth distribution is tenfold larger than the share belonging to the top decile (34% and 3.2%). Second, the former moves in a specular manner to the latter. Third, the negative slope of the wage curve is confirmed. Fourth, the wage-to-unemployment ratio increases monotonically with gross wealth, and decreases monotonically with net wealth for negative values of net wealth. (Stone Center on Socio-Economic Inequality Working Paper)

Suggested Citation

  • , Stone Center & Iacono, Roberto & Ranaldi, Marco, 2020. "The Wage Curve Across the Wealth Distribution," SocArXiv m5928, Center for Open Science.
    • Handle: RePEc:osf:socarx:m5928
    DOI: 10.31219/osf.io/m5928
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    References listed on IDEAS

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    1. Kaushik Basu & Patrick Nolen, 2008. "Unemployment and Vulnerability: A Class of Distribution Sensitive Measures, its Axiomatic Properties, and Applications," Studies in Choice and Welfare, in: Prasanta K. Pattanaik & Koichi Tadenuma & Yongsheng Xu & Naoki Yoshihara (ed.), Rational Choice and Social Welfare, pages 237-258, Springer.
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    Cited by:

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    3. Lifan Yang & Jiatian Dong & Weixin Yang, 2024. "Analysis of Regional Competitiveness of China’s Cross-Border E-Commerce," Sustainability, MDPI, vol. 16(3), pages 1-20, January.

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    More about this item

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts

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