Matching, Reallocation and Changes in Earnings Dispersion

20 Pages Posted: 19 Jan 2009

See all articles by Simon M. Burgess

Simon M. Burgess

University of Bristol - Department of Economics; University of Bristol - Leverhulme Centre for Market and Public Organisation (CMPO); Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

Julia Lane

National Science Foundation

Kevin L McKinney

University of California, Los Angeles (UCLA)

Date Written: 0000

Abstract

The fractal nature of the rise in earnings dispersion is one of its key features. In this paper, we offer a new perspective on the causes of changes in earnings dispersion, focusing on the role of labour reallocation. We set out a framework showing that job and worker reallocation affects earnings dispersion. We quantify this using a data set comprising almost the universe of workers and employers in Maryland. The changing allocation of workers to jobs played a significant role in explaining movements in the dispersion of earnings.

Suggested Citation

Burgess, Simon and Lane, Julia and McKinney, Kevin L, Matching, Reallocation and Changes in Earnings Dispersion (0000). Oxford Bulletin of Economics and Statistics, Vol. 71, Issue 1, pp. 91-110, February 2009. Available at SSRN: https://ssrn.com/abstract=1329783 or http://dx.doi.org/10.1111/j.1468-0084.2008.00519.x

Simon Burgess

University of Bristol - Department of Economics ( email )

8 Woodland Road
Bristol BS8 ITN
United Kingdom
+44 117 928 8436 (Phone)
+44 117 928 8577 (Fax)

HOME PAGE: http://www.bris.ac.uk/Depts/Economics/department/profiles/burgess.htm

University of Bristol - Leverhulme Centre for Market and Public Organisation (CMPO)

12 Priory Road
Bristol BS8 1TN
United Kingdom

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Julia Lane

National Science Foundation

4201 Wilson Boulevard
Arlington, VA 22230
United States

Kevin L McKinney

University of California, Los Angeles (UCLA) ( email )

405 Hilgard Avenue
Box 951361
Los Angeles, CA 90095
United States

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