Sectoral Trends in Earnings Inequality and Employment: International Trade, Skill-Biased Technological Change, or Labour Market Institutions?

LIS Working Paper Series no. 595

69 Pages Posted: 23 Jul 2013

See all articles by Stefan Thewissen

Stefan Thewissen

Leiden University - Department of Economics, Students

Chen Wang

Leiden University - Department of Economics; Leiden University

Olaf van Vliet

Leiden University - Leiden Law School; Leiden University - Department of Economics

Date Written: July 23, 2013

Abstract

Current studies addressing the rise in inequality confine themselves to country-level developments. This paper delineates trends in earnings inequality and employment at the sectoral level for eight LIS countries between 1985-2005. Earnings inequality mainly manifests itself within rather than between sectors. Yet, there is significant variation in the level of inequality across sectors whilst the differences between countries in intrasectoral inequality are much less pronounced. A general rise in intrasectoral earnings dispersion and a shift from the manufacturing industry towards the financial sector are perceptible. Crosssectional pooled time-series analyses indicate significant associations between the exposure to import and decreased employment within sectors, whilst no evidence is found for relations between earnings inequality and international trade or skill-biased technological change.

Keywords: earnings inequality, sectoral approach, globalisation, skill-biased technological change, income inequality

JEL Classification: D30, D63, E24, L60

Suggested Citation

Thewissen, Stefan and Wang, Chen and van Vliet, Olaf, Sectoral Trends in Earnings Inequality and Employment: International Trade, Skill-Biased Technological Change, or Labour Market Institutions? (July 23, 2013). LIS Working Paper Series no. 595. Available at SSRN: https://ssrn.com/abstract=2297227 or http://dx.doi.org/10.2139/ssrn.2297227

Stefan Thewissen (Contact Author)

Leiden University - Department of Economics, Students ( email )

Netherlands

Chen Wang

Leiden University - Department of Economics ( email )

Steenschuur 25 PO Box 9520
Leiden, 2300 RA
Netherlands
++31715277819 (Phone)

HOME PAGE: http://law.leiden.edu/organisation/taxlawandeconomics/economics/staff/wang.html

Leiden University ( email )

Postbus 9500
Leiden, Zuid Holland 2300 RA
Netherlands

Olaf Van Vliet

Leiden University - Leiden Law School ( email )

Steenschuur 25 PO Box 9520
Leiden, 2300 RA
Netherlands

HOME PAGE: http://www.law.leiden.edu/organisation/taxlawandeconomics/economics/staff/vliet.html

Leiden University - Department of Economics ( email )

P.O. Box 9520
2300 RA Leiden, NL-2300RA
Netherlands

HOME PAGE: http://www.law.leiden.edu/organisation/taxlawandeconomics/economics/staff/vliet.html

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