Workforce Composition, Productivity and Pay: The Role of Firms in Wage Inequality

Criscuolo, Chiara; Hijzen, Alexander; Schwellnus, Cyrille; Chen, Wen‐Hao; Fabling, Richard; Fialho, Priscilla; Grabska, Katarzyna; Kambayashi, Ryō; Leidecker, Timo; Skans, Oskar Nordström; Riom, Capucine; Roth, Duncan; Stadler, Balazs; Upward, Richard; Zwysen, Wouter

doi:10.2139/ssrn.3596678

Cited by 19 publications

(24 citation statements)

References 16 publications

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“…Kuhn and et al (2002) compare wage dynamics following job loss using matched employer-employee datasets. Criscuolo et al (2020) quantify the role of firms in explaining wage inequality.…”

Section: D2 Labor Market Institutionsmentioning

confidence: 99%

The Unequal Consequences of Job Loss Across Countries

et al. 2022

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“…Kuhn and et al (2002) compare wage dynamics following job loss using matched employer-employee datasets. Criscuolo et al (2020) quantify the role of firms in explaining wage inequality.…”

Section: D2 Labor Market Institutionsmentioning

confidence: 99%

The Unequal Consequences of Job Loss Across Countries

et al. 2022

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“…Between-firm inequality has grown across many developed countries (Tomaskovic-Devey et al, 2020). Moreover, occupation and worker characteristics are increasingly correlated with working at a high-paying firm (Card et al, 2013;Criscuolo et al, 2020;Wilmers and Aeppli, 2021). This consolidation of potentially independent dimensions of inequality-firm and occupation or education-means that even understanding how individual traits affect intergenerational earnings transmission requires studying firms.…”

mentioning

confidence: 99%

“…If in an earlier era, Ford Motor Company offered relatively high pay to production workers, now it is a largely managerial and professional segment of the workforce, at companies like Google and Goldman Sachs, that benefit from employment at a high-paying firm. These patterns have appeared across multiple developed countries and, alongside increased returns to skill, are a primary cause of rising earnings inequality (Criscuolo et al, 2020;Tomaskovic-Devey et al, 2020).…”

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confidence: 99%

Firms and the Intergenerational Transmission of Labor Market Advantage

Engzell¹,

Wilmers²

2021

Preprint

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Recent research finds that pay inequality stems both from firm pay-setting and from workers’ individual characteristics. Yet, intergenerational mobility research remains focused on transmission of individual traits, and has failed to test how firms shape the inheritance of inequality. We study this question using three decades of Swedish population register data, and decompose the intergenerational earnings correlation into firm pay premiums and stable worker effects. One quarter of the intergenerational earnings correlation at midlife is explained by sorting between firms with unequal pay. Employer or industry inheritance account for a surprisingly small share of this firm-based earnings transmission. Instead, children from high-income backgrounds benefit from matching with high-paying firms irrespective of the sources of parents’ earnings advantage. Our analysis reveals how an imperfectly competitive labor market provides an opening for skill-based rewards in one generation to become class-based advantages in the next.

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“…3 Similarly, a Google Scholar search of the term "income inequality" turns up 12,900 articles between 1950 and 1989, 130,000 between 1990 and 2007, and 323,000 since 2008. 4 The project most closely related to GRID is the OECD's LinkEED, which uses employer-employee matched panel data from 17 countries (see Criscuolo et al (2020)). The LinkEED project produced a book on the role of firms in wage inequality (OECD, 2021) but does not have a publicly available database.…”

Section: Introductionmentioning

confidence: 99%

“…44 The project most closely related to GRID is the OECD's LinkEED, which uses employer‐employee matched panel data from 17 countries (see Criscuolo et al (2020)). The LinkEED project produced a book on the role of firms in wage inequality (OECD, 2021) but does not have a publicly available database. …”

mentioning

confidence: 99%

Global trends in income inequality and income dynamics: New insights from GRID

Guvenen

Pistaferri

Violante

2022

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The Global Repository of Income Dynamics (GRID) is a new open‐access, cross‐country database that contains a wide range of micro statistics on income inequality, dynamics, and mobility. It has four key characteristics: it is built on micro panel data drawn from administrative records; it fully exploits the longitudinal dimension of the underlying data sets; it offers granular descriptions of income inequality and income dynamics for finely defined subpopulations; and it is designed from the ground up with the goals of harmonization and cross‐country comparability. This paper introduces the database and presents a set of global trends in income inequality and income dynamics across the 13 countries that are currently in GRID. Our results are based on the statistics created for GRID by the 13 country teams who also contributed to this special issue with individual articles.

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Workforce Composition, Productivity and Pay: The Role of Firms in Wage Inequality

Cited by 19 publications

References 16 publications

The Unequal Consequences of Job Loss Across Countries

The Unequal Consequences of Job Loss Across Countries

Firms and the Intergenerational Transmission of Labor Market Advantage

Global trends in income inequality and income dynamics: New insights from GRID

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