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Journal Article

Rising Between-Workplace Inequalities in High-Income Countries

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Godechot,  Olivier
Assoziierte Wissenschaftlerinnen und Wissenschaftler, MPI for the Study of Societies, Max Planck Society;
Max Planck Sciences Po Center on Coping with Instability in Market Societies (MaxPo), MPI for the Study of Societies, Max Planck Society;

Safi,  Mirna
Max Planck Sciences Po Center on Coping with Instability in Market Societies (MaxPo), MPI for the Study of Societies, Max Planck Society;

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Citation

Tomaskovic-Devey, D., Rainey, A., Avent-Holt, D., Bandelj, N., Boza, I., Cort, D., et al. (2020). Rising Between-Workplace Inequalities in High-Income Countries. Proceedings of the National Academy of Sciences of the United States of America, 117(17), 9277-9283. doi:10.1073/pnas.1918249117.


Cite as: http://hdl.handle.net/21.11116/0000-0007-5374-9
Abstract
It is well documented that earnings inequalities have risen in many high-income countries. Less clear are the linkages between rising income inequality and workplace dynamics, how within- and between-workplace inequality varies across countries, and to what extent these inequalities are moderated by national labor market institutions. In order to describe changes in the initial between- and within-firm market income distribution we analyze administrative records for 2,000,000,000+ job years nested within 50,000,000+ workplace years for 14 high-income countries in North America, Scandinavia, Continental and Eastern Europe, the Middle East, and East Asia. We find that countries vary a great deal in their levels and trends in earnings inequality but that the between-workplace share of wage inequality is growing in almost all countries examined and is in no country declining. We also find that earnings inequalities and the share of between-workplace inequalities are lower and grew less strongly in countries with stronger institutional employment protections and rose faster when these labor market protections weakened. Our findings suggest that firm-level restructuring and increasing wage inequalities between workplaces are more central contributors to rising income inequality than previously recognized.