Tomaskovic-Devey, Donald, Rainey, Anthony, Avent-Holt, Dustin, Bandelj, Nina, Boza, István, Cort, David, Godechot, Olivier, Hajdu, Gergely, Hällsten, Martin, Folke Henriksen, Lasse, Skeie Hermansen, Are, Hou, Feng, Jung, Jiwook, Kanjuo-Mrcela, Aleksandra, King, Joe, Kodama, Naomi, Kristal, Tali, Krízková, Alena, Lippényi, Zoltán, Maja Melzer, Silvia, Mun, Eunmi, Penner, Andrew, Petersen, Trond, Poje, Andreja, Safi, Mirna, Thaning, Max, Tufail, Zaibu. 2020. Rising between-workplace inequalities in high-income countries. Proceedings of the National Academy of Sciences (PNAS).

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@ARTICLE{Tomaskovic-Devey2020,
title = {Rising between-workplace inequalities in high-income countries},
author = {Donald Tomaskovic-Devey and Anthony Rainey and Dustin Avent-Holt and Nina Bandelj and István Boza and David Cort and Olivier Godechot and Gergely Hajdu and Martin Hällsten and Lasse Folke Henriksen and Are Skeie Hermansen and Feng Hou and Jiwook Jung and Aleksandra Kanjuo-Mrcela and Joe King and Naomi Kodama and Tali Kristal and Alena Krízková and Zoltán Lippényi and Silvia Maja Melzer and Eunmi Mun and Andrew Penner and Trond Petersen and Andreja Poje and Mirna Safi and Max Thaning and Zaibu Tufail},
year = {2020},
doi = {https://doi.org/10.1073/pnas.1918249117},
url = {https://www.pnas.org/content/early/2020/04/07/1918249117},
language = {EN},
journal = {Proceedings of the National Academy of Sciences (PNAS)},
abstract = {It is well documented that earnings inequalities have risen in many high-income countries. Less clear are the linkages between rising income inequality and workplace dynamics, how within- and between-workplace inequality varies across countries, and to what extent these inequalities are moderated by national labor market institutions. In order to describe changes in the initial between- and within-firm market income distribution we analyze administrative records for 2,000,000,000+ job years nested within 50,000,000+ workplace years for 14 high-income countries in North America, Scandinavia, Continental and Eastern Europe, the Middle East, and East Asia. We find that countries vary a great deal in their levels and trends in earnings inequality but that the between-workplace share of wage inequality is growing in almost all countries examined and is in no country declining. We also find that earnings inequalities and the share of between-workplace inequalities are lower and grew less strongly in countries with stronger institutional employment protections and rose faster when these labor market protections weakened. Our findings suggest that firm-level restructuring and increasing wage inequalities between workplaces are more central contributors to rising income inequality than previously recognized.},
}

Abstract

It is well documented that earnings inequalities have risen in many high-income countries. Less clear are the linkages between rising income inequality and workplace dynamics, how within- and between-workplace inequality varies across countries, and to what extent these inequalities are moderated by national labor market institutions. In order to describe changes in the initial between- and within-firm market income distribution we analyze administrative records for 2,000,000,000+ job years nested within 50,000,000+ workplace years for 14 high-income countries in North America, Scandinavia, Continental and Eastern Europe, the Middle East, and East Asia. We find that countries vary a great deal in their levels and trends in earnings inequality but that the between-workplace share of wage inequality is growing in almost all countries examined and is in no country declining. We also find that earnings inequalities and the share of between-workplace inequalities are lower and grew less strongly in countries with stronger institutional employment protections and rose faster when these labor market protections weakened. Our findings suggest that firm-level restructuring and increasing wage inequalities between workplaces are more central contributors to rising income inequality than previously recognized.

Publication's profile

Status of publication	Published
Affiliation	WU
Type of publication	Journal article
Journal	Proceedings of the National Academy of Sciences (PNAS)
Citation Index	SCI
Language	English
Title	Rising between-workplace inequalities in high-income countries
Year	2020
Reviewed?	Y
URL	https://www.pnas.org/content/early/2020/04/07/1918249117
DOI	https://doi.org/10.1073/pnas.1918249117
Open Access	Y
Open Access Link	https://www.pnas.org/content/pnas/early/2020/04/07/1918249117.full.pdf
JEL	J31, D63

Associations

People: Hajdu, Gergely (Details)
External: Avent-Holt, Dustin (Augusta University, United States/USA); Bandelj, Nina (University of California, Irvine, United States/USA); Boza, István (Central European University, Hungary); Cort, David (University of Massachusetts, United States/USA); Folke Henriksen, Lasse (Copenhagen Business School, Denmark); Godechot, Olivier (Sciences Po, France); Hällsten, Martin (Stockholm University, Sweden); Hou, Feng (Statistics Canada, Canada); Jung, Jiwook (University of Illinois, United States/USA); Kanjuo-Mrcela, Aleksandra (University of Ljubljana, Slovenia); King, Joe (Institute for Defense Analyses, United States/USA); Kodama, Naomi (Nihon University, Japan); Kristal, Tali (University of Haifa, Israel); Krízková, Alena (Czech Academy of Sciences, Czech Republic); Lippényi, Zoltán (University of Groningen, Netherlands); Maja Melzer, Silvia (University of Barcelona, Spain); Mun, Eunmi (University of Illinois, United States/USA); Penner, Andrew (University of California, United States/USA); Petersen, Trond (University of California, Berkeley, United States/USA); Poje, Andreja (Association of Free Trade Unions of Slovenia, Slovenia); Rainey, Anthony (University of Massachusetts, United States/USA); Safi, Mirna (Sciences Po, France); Skeie Hermansen, Are (University of Oslo, Finland); Thaning, Max (Stockholm University, Sweden); Tomaskovic-Devey, Donald (University of Massachusetts, United States/USA); Tufail, Zaibu (University of California, Irvine, United States/USA)
Organization: Institute for Public Sector Economics IN (Details)
Research areas (ÖSTAT Classification 'Statistik Austria'): 5339 Economic analyses (Details); 5407 Ethics and social sciences (Details)

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