Rising Top, Falling Bottom: Industries and Rising Wage Inequality
- American Economic Review 2024
- 3250-3283
Most of the rise in overall earnings inequality from 1996 to 2018 is accounted for by rising between-industry dispersion. The contribution of industries is right-skewed with the top 10 percent of four-digit NAICS industries dominating. The top 10 percent are clustered in high-paying high-tech and low-paying retail sectors. In the top industries, high-wage workers are increasingly sorted to high-wage industries with rising industry premia. In the bottom industries, low-wage workers are increasingly sorted into low-wage industries, with rising employment and falling industry wage premia.
0002-8282
Labor Demand Labor Productivity Personnel Economics Wage Differentials Wage Level and Structure Human Capital