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Income Unfairness and Occupational Choice

Author

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  • Furukawa, Yosuke

Abstract

In this paper, we reassessed labor-market adjustment by using an indicator of occupational income unfairness (OIU) which shows whether workers are paid equal to what is warranted by their effort. Although an empirically derived unfairness indicator does not necessarily reflect workers' perceived unfairness, OIU in some occupations indicates the existence of a labor-market adjustment mechanism. However, unfairness remains in some occupations, perhaps because it is caused by structural development problems.

Suggested Citation

  • Furukawa, Yosuke, 2016. "Income Unfairness and Occupational Choice," MPRA Paper 74682, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:74682
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    References listed on IDEAS

    as
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    5. Katz, Lawrence F. & Autor, David H., 1999. "Changes in the wage structure and earnings inequality," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 26, pages 1463-1555, Elsevier.
    6. Almås, Ingvild & Cappelen, Alexander W. & Lind, Jo Thori & Sørensen, Erik Ø. & Tungodden, Bertil, 2011. "Measuring unfair (in)equality," Journal of Public Economics, Elsevier, vol. 95(7), pages 488-499.
    7. Acemoglu, Daron & Autor, David, 2011. "Skills, Tasks and Technologies: Implications for Employment and Earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 12, pages 1043-1171, Elsevier.
    8. Eeckhout, Jan & Jovanovic, Boyan, 2012. "Occupational choice and development," Journal of Economic Theory, Elsevier, vol. 147(2), pages 657-683.
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    More about this item

    Keywords

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    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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