American Economic Review
ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)
Rising Top, Falling Bottom: Industries and Rising Wage Inequality
American Economic Review
vol. 114,
no. 10, October 2024
(pp. 3250–83)
Abstract
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.Citation
Haltiwanger, John, Henry R. Hyatt, and James R. Spletzer. 2024. "Rising Top, Falling Bottom: Industries and Rising Wage Inequality." American Economic Review, 114 (10): 3250–83. DOI: 10.1257/aer.20221574Additional Materials
JEL Classification
- J23 Labor Demand
- J24 Human Capital; Skills; Occupational Choice; Labor Productivity
- J31 Wage Level and Structure; Wage Differentials
- L25 Firm Performance: Size, Diversification, and Scope
- M52 Personnel Economics: Compensation and Compensation Methods and Their Effects