Search results for "Wage inequality"
showing 10 items of 10 documents
Globalization, Worker Mobility and Wage Inequality
2015
In the present paper, I integrate frictional labor markets with on-the-job search into an otherwise standard heterogeneous firm model of intra-industry trade. Most importantly, I show that the returns to workers’ inter-firm mobility are higher in a trade equilibrium than in autarky. Intuitively, by favoring large and productive firms, international trade amplifies the disparities in profitability between small and large firms. Hence, the returns to labor reallocation across firms rise. In view of the empirically observed higher inter-firm mobility among high-skill workers, this suggests a skill-biased impact of trade liberalization.
Young Lads and Old Tars: Changing Age Structure of the Nordic Sailors, 1750s–1930s
2022
AbstractThis article analyzes the changing age structure of Swedish and Finnish sailors for almost 200 years. We show that the proportion of the youngest men increased during the age of sail (i.e., the older technology). The average age increased significantly during the early twentieth century as steam (i.e., the newer technology) replaced sail in Nordic shipping. Thus, a technological revolution did not displace the older workers, but rather diminished the demand for the younger ones. This study shows, however, that technological changes were not the only drivers of changes in the age structure of Nordic sailors. Institutional and societal changes also played an important role, though the…
Trade Openness and the Skill Premium An Inverted - UU Relation?
2016
Relying on linked employer–employee data from the German manufacturing sector in 1996–2010, I study the relation between the share of exporting establishments and the skill premium within narrowly defined industries. I document that the skill premium tends to be higher in industries with a larger share of exporting establishments. However, once unobserved industry heterogeneity is taken into account, the empirical evidence suggests an inverted-‘U’ relation between the share of exporting establishments and the skill premium.
Technology Diffusion, Worker Mobility and the Returns to Skill
2015
In this paper I illustrate how the diffusion across firms of a skill-neutral technology leads to a skill-biased impact on the economy. The model identifies (i) differences in inter-firm mobility between skill groups, (ii) productivity dispersion across firms within industries, and (iii) differences in wages between small and large firms as key determinants of the skill premium. Calibrated to match differences in inter-firm mobility between skill groups and rising productivity dispersion across firms, the model ascribes one-third of the sharp increase in the skill premium in U.S. manufacturing from 1977 to 1997 to skill-neutral technical progress and the technology diffusion process itself. …
Plant Productivity Dispersion and the College Premium: Evidence from the United States 1977-1997
2015
For the United States in 1987-2014, I document at business cycle frequencies that the high-skill workers’ employer size wage premium is high (low) in times of low (high) unemployment relative to that of the low-skill workers. Specifically, the differential employer size wage premium between high-skill and low-skill workers has an unconditional correlation of -0.4 with the unemployment rate, and varies by about 6 percent over the business cycle. The skill premium itself does not exhibit a clear business cycle pattern over the sample period.
Small Employers, Large Employers and the Skill Premium
2015
I document the comovement of the skill premium with the differential employer size wage premium between high- and low-skill workers in U.S. manufacturing during the postwar era. For the baseline specification, i.e., establishments with at least 500 employees categorized as large employers and non-production workers as high-skilled, I obtain a correlation coefficient of 0.87. Exploiting variations across subindustries while controlling for other potentially relevant factors, I estimate that an increase by ten log-points in the differential size premium is associated with an increase in the skill premium by three log-points.
A Note on Symmetry in Job Contact Networks
2007
Since the seminal work of Granovetter (1995), the sociological literature highlighted the importance of social relationships, like friends, relatives and acquaintances, as sources of information on jobs in labor markets. Such importance is also confirmed by a number of empirical studies.3 More recently, economists have devoted considerable attention to this topic,4 so that the study of individual and aggregate economic outcomes produced by the presence of social relationships in labor markets is becoming a fruitful research area in economics.
Deskilling and decline in skill premium during the age of sail : Swedish and Finnish seamen, 1751–1913
2016
The study examines the evolution of skill premium and share at industry level in shipping during the age of sail. We argue that the period from the 1750s to the 1910s represented deskilling for the seamen working in sailing ships. The growth of international trade and shipping during the first era of globalization increased the overall demand for sailors but decreased the relative demand for skilled labor in favor of less skilled ones. This deskilling was associated with a decline in wage inequality, as the premium for high skilled seamen fell relative to mean wages in the shipping industry. The decline in skill premium may have facilitated the growth of trade and shipping, as the relative …
Spatial aggregation and resampling expansion of big surveys: An analysis of wage inequality
2020
Income inequality is becoming a growing concern, worldwide, with wage inequality being the root cause of its recent escalation. With the aim of adding to the knowledge on this subject, this paper focuses on the spatial dimension of the problem, an aspect which has received less attention in the literature. We identify the determinants of inequality in wage distribution in Spain at a provincial level using the microdata of the Structure of Earnings Survey (N = 216,769) and estimate their impact from a spatial perspective. Spatial computation of wage concentrations, however, reduces the sample size to just 52 observations, leading to model challenges. To overcome this problem, we adopt a supe…
Comparing past and present wage inequality in two globalisation periods
2013
Abstract This paper compares past and present globalisation with an aim to highlighting the different factors that drove wage inequality then and those which are doing so now. We have constructed a ratio of wage inequality for 15 countries in the first period of globalisation (1870–1913) and the subsequent period of deglobalisation (1914–1930) and then compare this pattern to wage inequality in the 1980s and 1990s. We propose that the difference in wage inequality trends for the two globalisation periods is due to migration and institutional factors (education and labour market institutions). These factors offset the increase in wage inequality produced by globalisation and technological ch…