Inequality in Earnings at the Close of the Twentieth Century

Morris, Martina; Western, Bruce

doi:10.1146/annurev.soc.25.1.623

Cited by 496 publications

(380 citation statements)

References 70 publications

(55 reference statements)

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“…To date, most research has focused on market-based accounts (e.g., Autor 2003; Bentele and Kenworthy 2013) or institutional explanations (e.g., Morris and Western 1999;Volscho 2005) for rising wage inequality. Though these theories have greatly enhanced our understanding of the causes for the rise, a significant amount of variance remains unexplained.…”

Section: The Firm-size Wage Effect and Rising Wage Inequalitymentioning

confidence: 99%

“…Driven in large part by a widening wage distribution, between 1976 and 2014, income inequality, as measured by the Gini coefficient, rose nearly 21 percent. 1 While scholars have primarily used market (e.g., globalization, skill-biased technological change) or institutional (e.g., unionization, public policy) explanations to account for the rise (see Morris and Western 1999), recent studies have begun to investigate whether and how organizations affect the distribution of earnings in the broader labor market (e.g., Avent-Holt and TomaskovicDevey 2014; Barth et al 2014;Song et al 2015;Sørensen and Sorenson 2007). Organizations are a likely important driver of inequality because they provide unequal access to remuneration and rewards (Abowd and Kramarz 1999;Baron 1984;DiNardo, Fortin, and Lemieux 1996).…”

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confidence: 99%

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Growing Apart: The Changing Firm-Size Wage Premium and Its Inequality Consequences

Cobb

Lin

2017

Organization Science

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Wage inequality in the United States has risen dramatically over the past few decades, prompting scholars to develop a number of theoretical accounts for the upward trend. This study argues that large firms have been a prominent labor-market institution that mitigates inequality. By compensating their low-and middle-wage employees with a greater premium than their higher-wage counterparts, large U.S. firms reduced overall wage dispersion. Yet, broader changes to employment relations associated with the demise of internal labor markets and the emergence of alternative employment arrangements have undermined large firms' role as an equalizing institution. Using data from the Current Population Survey and the Survey of Income and Program Participation, we find that in 1989, although all private-sector workers benefited from a firm-size wage premium, the premium was significantly higher for individuals at the lower end and middle of the wage distribution compared to those at the higher end. Between 1989 and 2014, the average firm-size wage premium declined markedly. The decline, however, was exclusive to those at the lower end and middle of the wage distribution, while there was no change for those at the higher end. As such, the uneven declines in the premium across the wage spectrum could account for about 20% of rising wage inequality during this period, suggesting that firms are of great importance to the study of rising inequality.Keywords firm-size wage premium, inequality, internal labor market, employment relationship Disciplines Management Sciences and Quantitative MethodsThis journal article is available at ScholarlyCommons:

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Section: The Firm-size Wage Effect and Rising Wage Inequalitymentioning

confidence: 99%

mentioning

confidence: 99%

Growing Apart: The Changing Firm-Size Wage Premium and Its Inequality Consequences

Cobb

Lin

2017

Organization Science

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“…On the social camp, scholars, mostly sociologists, argue that increased income inequality largely results from the changing social conditions, instead of economic restructuring (Chevan & Stokes, 2000;Morris & Western, 1999). These social conditions include, among others, the rate of participation in the labor force of men and women, the proportion of female-headed households, and the size of the minority population.…”

Section: Possible Explanations For Changing Income Inequalitymentioning

confidence: 99%

Determinant of income inequality in Indonesia

Afandi

Rantung

Marashdeh

2017

Econ. J. Emerg. Mark.

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This study examines whether changing economic structure, social conditions, and financialization are responsible for increased income inequality in Indonesia. By employing panel data of 32 provinces in Indonesia that spans from 2007 to 2013, it finds that structural change affects income inequality, increased share of finance reduces inequality, which is against the financialization hypothesis, and social conditions have expected effects on income inequality. While an increased share of both agriculture and service sectors tends to reduce inequality, an increased share of manufacture sector has no effect on inequality. This study finds that falling poverty increases inequality, implying that policy to reduce poverty might not be neutral for inequality and instead cannot prevent it from increasing. Since the higher the college participation rate the higher income inequality tends to be, it does not automatically imply that in order to reduce inequality we need to reduce the number of people who go to college. It might be the case that the college participation rate has not reached a turning point, below which its increase increases inequality, but beyond which its increases reduces inequality. AbstrakPenelitian ini mengkaji pengaruh perubahan struktur ekonomi, finansialisasi, dan kondisi sosial terhadap ketimpangan pendapatan. Menggunakan data panel dengan cross-section 32 propinsi di Indonesia dan rentang waktu 2007-2013, penelitian ini menemukan bahwa perubahan struktural mempengaruhi ketimpangan, kenaikan sumbangan sektor keuangan dalam PDB cenderung menurunkan ketimpangan, yang berarti bertentangan dengan hipotesis finansialisasi, dan kondisi sosial juga berpengaruh terhadap ketimpangan. Sementara kenaikan sumbangan baik sektor pertanian maupun sektor jasa dalam PDB cenderung mengurangi ketimpangan, kenaikan sumbangan sektor industri terbukti tidak mempengaruhi ketimpangan. Studi ini juga menemukan bahwa turunnya tingkat kemiskinan justru manaikkan ketimangan, sehingga kebijakan untuk menurunkan kemiskinan bisa bersifat tidak netral terhadap ketimpangan, melainkan tidak mampu membiarkan ketimpangan untuk tidak naik. Juga ditemukan bahwa kenaikan angka partisipasi kuliah justru menaikkan ketimpangan, yang mengimplikasikan bahwa angka ini belum mencapai titik belok (turning point).

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“…Along with this growth in corporate lobbying, other social and political opportunities have opened the door for movements like climate change contrarianism to flourish, such as weakening restrictions on political finance (24) and the concentration of corporate wealth more generally (25,26). With these factors in mind, and building on prior climate change research, this study asks three specific-and closely related-empirical research questions: (i) Of all of the organizations in the climate contrarian movement, which ones produced discourse?…”

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confidence: 99%

Corporate funding and ideological polarization about climate change

Farrell

2015

Proc. Natl. Acad. Sci. U.S.A.

451

248

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Drawing on large-scale computational data and methods, this research demonstrates how polarization efforts are influenced by a patterned network of political and financial actors. These dynamics, which have been notoriously difficult to quantify, are illustrated here with a computational analysis of climate change politics in the United States. The comprehensive data include all individual and organizational actors in the climate change countermovement (164 organizations), as well as all written and verbal texts produced by this network between 1993-2013 (40,785 texts, more than 39 million words). Two main findings emerge. First, that organizations with corporate funding were more likely to have written and disseminated texts meant to polarize the climate change issue. Second, and more importantly, that corporate funding influences the actual thematic content of these polarization efforts, and the discursive prevalence of that thematic content over time. These findings provide new, and comprehensive, confirmation of dynamics long thought to be at the root of climate change politics and discourse. Beyond the specifics of climate change, this paper has important implications for understanding ideological polarization more generally, and the increasing role of private funding in determining why certain polarizing themes are created and amplified. Lastly, the paper suggests that future studies build on the novel approach taken here that integrates largescale textual analysis with social networks.funding | polarization | politics | computational social science | climate change I deological polarization presents increasingly important challenges for sustainability science and solutions for climate change. Much attention has been given to the outcomes of polarization by demonstrating its effect on individual choices about energy-efficient behavior (1), individual attitudes about climate change (2-6), and variation in individuals' trust in science as a whole, especially among Americans who self-identify as politically conservative (7). Climate change is not the first issue with scientific consensus to become so highly polarized (8, 9), but the magnitude of its ecological and human-health effects-and the socio-political roadblocks for mitigating emissions-have led to a wide body of attitudinal research documenting the current sociopolitical environment of polarization that exists.Despite this fruitful body of individual-level research, we have considerably less data and understanding about the underlying organizational and financial factors that made polarization possible in the first place. Qualitative and historical research has suggested that well-funded and well-organized "contrarian" campaigns are especially important for spreading skepticism or denial where scientific consensus exist-such as in the present case of global warming, or in historical contrarian efforts to create doubt about the link between smoking and cancer (8-15). The primary way that contrarian campaigns create skepticism and ideological polarizati...

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Inequality in Earnings at the Close of the Twentieth Century

Cited by 496 publications

References 70 publications

Growing Apart: The Changing Firm-Size Wage Premium and Its Inequality Consequences

Growing Apart: The Changing Firm-Size Wage Premium and Its Inequality Consequences

Determinant of income inequality in Indonesia

Corporate funding and ideological polarization about climate change

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