Full Citation

Title: Wage and Earnings Inequality Between and Within Occupations: The Role of Labor Supply

Citation Type: Working Paper

Publication Year: 2023

ISBN:

ISSN:

DOI: 10.13039/501100011033/grant

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Abstract: We document systematic differences in wage and earnings inequality between and within occupations and show that these differences are intimately related to systematic differences in labor supply across occupations. We then develop a variant of a Roy model in which earnings are a non-linear function of hours, with the extent of this non-linearity differing across occupations. In our theory, the interplay between heterogeneity in tastes for leisure and occupational differences in non-linearities affects the sorting of workers. Moreover, this interplay is crucial to account for the facts on the distributions of hours, wages, and earnings within and across occupations.

Url: http://www.nber.org/papers/w31665

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Authors: Erosa, Andrés; Fuster, Luisa; Kambourov, Gueorgui; Rogerson, Richard

Series Title: NBER Working Paper Series

Publication Number: 31665

Institution: NBER

Pages: 1-38

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Data Collections: IPUMS CPS

Topics: Labor Force and Occupational Structure, Poverty and Welfare

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