This paper uses an event study approach to estimate the impact of children on the gender earnings gap in Australia. We use the Household, Income and Labour Dynamics in Australia (HILDA) survey to show the arrival of children has a large and persistent impact on the gender earnings gap, reducing...

Labor unions, chiefly through collective organizing and bargaining, almost universally increase the wages of their members, even after controlling for individual, job, firm, and other characteristics that affect pay (Fang and Verma 2002). This earnings advantage of union workers is known as the...

Since 1980, there has been a steady increase in earnings inequality alongside rapid technological growth in the U.S. economy. To what extent does technological change explain the observed increase in earnings dispersion? How does it affect the optimal progressivity of the tax system? To answer...

Using representative data from the German Socio-Economic Panel (SOEP), this paper finds a statistically significant union wage premium in Germany of almost three percent which is not simply a collective bargaining premium. Given that the union membership fee is typically about one percent of...

We describe how ethnic disparities in the labor market between prime aged Hispanic and non-Hispanic white men have evolved over the last 50 years. Using data from the March CPS, the Census, and the ACS, we examine several employment and earning outcomes. Hispanics have experienced sizable gains...

This paper investigates the relationship between the spatial distribution of occupations with a high content of peer interactions and wages among Italian provinces. At this aim, we use a unique employer-employee dataset obtained by merging administrative data on wages and labor market histories...

Using representative data from the German Socio-Economic Panel (SOEP), this paper finds a statistically significant union wage premium in Germany of almost three percent which is not simply a collective bargaining premium. Given that the union membership fee is typically about one percent of...

The labour market position of the lower skilled is increasingly under pressure in most high income countries. Their bargaining position is declining under the twin pressures of globalisation and technological change; and they are at risk of losing access to better positions as firms’ pay and...

Using representative data from the German Socio-Economic Panel (SOEP), this paper finds a statistically significant union wage premium in Germany of almost three percent, which is not simply a collective bargaining premium. Given that the union membership fee is typically about one percent of...

We study the economic impact of becoming a taxi driver. Comparing individuals who pass the necessary written exams for a taxi driver's license to individuals who have not yet done so, we find that both immigrants and natives who enter into taxi driving have experienced negative employment...

In this paper we systematically evaluate the impact of using the alternative methods conventionally used in the international literature on the measured incidence of educational mismatch and its earnings effects. We use a rich Australian longitudinal data set for a controlled group of full-time...

Using a large sample of establishments drawn from the Multi-City Study of Urban Inequality (MCSUI) employer survey, we study gender differences in promotion rates and in the wage gains attached to promotions. Several unique features of our data distinguish our analysis from the previous...

The North American Free Trade Agreement (NAFTA) between Canada, Mexico, and the USA (1994–2018) has led to a reorganization of the productive structure of Mexico’s 32 metropolitan areas, affecting what jobs are offered in the country’s regions. This includes tertiary activity, which...

This paper studies how liberalizing outward foreign direct investments (FDI) affects manufacturers' engagement in global production and their domestic workers' labor market outcomes. Focusing on a liberalization policy in 2001 by the government of Taiwan that allowed 122 electronic products to...

This paper aims to clarify the relationship between monetary policy shocks and wage inequality. We emphasize the relevance of within and between wage group inequalities in explaining total wage inequality in the United States. Relying on the quarterly data for the period 2000-2020, our analysis...

In this article, it is analyzed which variables limit the reduction of inequality in South America, as measured by the skill premium, in the period of economic stagnation 2016-2019. It considers the variables that explain the decline in inequality in the region in 2002-2015 and applies a...

The role of technological change in labor market polarization has been subject to recent critique. This paper finds that changes in production technology played an important role in wage and job polarization in the US. It also demonstrates that such technological change is consistentwith the...

This paper explores gender wage dynamics using an administrative dataset covering Irish graduate earnings from 2010-2020. Our data allows us to look at a broad range of degrees and compare workers who are identical in important observable characteristics. We find that although male and female...

This paper investigates inequality and intragenerational economic mobility in a developing country with large inequality. Understanding economic mobility is important because it shapes our perception of inequality. Despite its significance, evidence on intragenerational mobility, especially that...

Recent technological developments related to the extraction and processing of data have given rise to widespread concerns about a reduction of privacy in the workplace. For a growing number of low-income and subordinated racial minority work forces in the United States, however, on-the-job data...

After years of scarce legislative developments, EU equality law seems to be gaining momentum, at least in the field of gender equality. Following the adoption of the Work-Life Balance Directive in 2019, in March 2021 the European Commission adopted a proposal for a Directive to strengthen the...

What drives differences in pay between firms? To answer this question, we build a harmonised cross-country linked employer-employee data set to analyse the role of firms in wage inequality since the 2000s in 20 OECD countries. The main finding is that, on average across countries, changes in the...

This paper revisits capital-skill complementarity and inequality, as in Krusell, Ohanian, Rios-Rull and Violante (KORV, 2000). Using their methodology, we study how well the KORV model accounts for more recent data, including the large changes in labor’s share of income that were not present...

This paper analyzes the spillover effects of the first sectoral minimum wage in Germany. Using a triple differences estimation, the study examines the impact of public discussion and announcement of the minimum wage on workers and industries outside the minimum wage sector. The results show that...

We describe how ethnic disparities in the labor market between prime aged Hispanic and non-Hispanic white men have evolved over the last 50 years. Using data from the March CPS, the Census, and the ACS, we examine several employment and earning outcomes. Hispanics have experienced sizable gains...

Using representative data from the German Socio-Economic Panel (SOEP), this paper finds a statistically significant union wage premium in Germany of almost three percent which is not simply a collective bargaining premium. Given that the union membership fee is typically about one percent of...

Using a vignette-based survey experiment on Amazon’s Mechanical Turk, we measure how people’s assessments of the fairness of race-based hiring decisions vary with the motivation and circumstances surrounding the discriminatory act and the races of the parties involved. Regardless of their...

In contrast to the UK, the USA and Germany, the majority of students in economics in France are female. Using a national survey of three cohorts of French university graduates in economics, we examine the gender differential in early career earnings. There is a significant raw differential in...

This paper examines the link between political support for basic income funded by linear income taxation and income inequality by household and gender. We develop a model with an increasingly right-skewed distribution of skill across households and a gender wage gap within households. Household...

A principal incentivizes a team of agents to work by choosing performance-contingent rewards. She desires to implement work by all agents as a unique Nash equilibrium. We develop a model in which agents are heterogeneous, both in their costs of effort and marginal contributions to team success....

We construct a search matching model, which incorporates endogenous labour market participation into the segmented labour market by combining the models of Albrecht and Vroman (2002) and Garibaldi and Wasmer (2005) to investigate how to raise the labour force participation rate in the segmented...

This paper studies gender differences in educational attainment and labor market compensation. Across a group of OECD countries, college attainment rates and college premia are higher for women than men, despite a gender wage gap in favour of college educated men. The gap in the college premium...

We study the evolution of the gender wage gap among young adults in Britain between 1972 and 2015 using data from four British cohorts born in 1946, 1958, 1970 and 1989/90 on early life factors, human capital, family formation and job characteristics. We account for non-random selection of men...

We study the effect of the bilateral trade integration with China on wage inequality in Brazil. Previous studies have documented the contribution of trade opening to the decline in inequality since the 1990s, driven primarily by cross-firm pay differences. We find a reduction in wage inequality...

With more than 29 million confirmed cases of Covid-19 in the U.S. and 119 million cases worldwide, the pandemic has affected companies, households and the global economy. We explore the effect of this health and economic shock on labor market outcomes, and the changes in labor market disparities...

In contrast to the UK, the USA and Germany, the majority of students in economics in France are female. Using a national survey of three cohorts of French university graduates in economics, we examine the gender differential in early career earnings. There is a significant raw differential in...

We hypothesize that the role of education in driving wage inequality is not the same across three racial groups in the United States. Using the Current Population Survey (CPS) data for the period 2000-2021, we show that education weighs at most 33% in explaining the wage inequality. Further, we...

This paper studies if workers infer from correlation about causal effects in the context of the part-time wage penalty. Differences in hourly pay between full-time and part-time workers are strongly driven by worker selection and systematic sorting. Ignoring these selection effects can lead to...

We propose a model of "trade" between high income and low-income groups where the rich being scared of the spread of infection hires the poor to engage them in exposure-intensive outdoor activities as workers in the household industry. People who endure hardships and sustain exposure to...