Full Citation

Title: Increasing Earnings Inequality: Reconciling Evidence from Survey and Administrative Data

Citation Type: Journal Article

Forthcoming?: Yes

ISBN:

ISSN: 0734-306X

DOI: 10.1086/726632

NSFID:

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Abstract: Analyses of survey data highlight observable person characteristics such as education and occupation as critical factors for rising earnings inequality, while industry has an offsetting effect. In contrast, analysis of administrative data highlights that rising between-firm earnings dispersion and, in turn, between-industry earnings dispersion dominates the rise in earnings inequality. We construct a novel integrated dataset based upon CPS microdata linked with LEHD administrative records. We find that most of the rise in earnings inequality is accounted for by rising between-industry inequality. This finding reflects a substantial contribution of increased sorting and segregation of observable person characteristics between industries.

Url: https://www.journals.uchicago.edu/doi/pdf/10.1086/726632

User Submitted?: No

Authors: Haltiwanger, John C.; Hyatt, Henry; Spletzer, James

Periodical (Full): Journal of Labor Economics

Issue:

Volume:

Pages: 1-34

Data Collections: IPUMS CPS

Topics: Poverty and Welfare

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