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Recent changes in British wage inequality: evidence from large firms and occupations

Schaefer, D. and Singleton, C. (2020) Recent changes in British wage inequality: evidence from large firms and occupations. Scottish Journal of Political Economy, 67 (1). pp. 100-125. ISSN 1467-9485

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To link to this item DOI: 10.1111/sjpe.12225

Abstract/Summary

Using a linked employer-employee dataset covering large firms, we present new evidence on British wage inequality trends over the past two decades. Differences between firms in the average wages they paid did not drive these trends. Between 1996 and 2005, greater wage variance within firms accounted for eighty-six percent of the total increase in wage variance among employees. In the following decade, wage inequality between firms continued to increase, whereas overall wage dispersion decreased. Approximately all the contribution to inequality dynamics from estimated firm-specific factors, throughout the employee wage distribution, disappears after accounting for the changing occupational content of wages.

Item Type:Article
Refereed:Yes
Divisions:Faculty of Arts, Humanities and Social Science > School of Politics, Economics and International Relations > Economics
ID Code:83562
Uncontrolled Keywords:wage inequality, within-firm inequality, occupational wage premiums
Publisher:Wiley

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