Local Labor Markets and the Evolution of Inequality

Posted: 8 Aug 2014

See all articles by Dan Black

Dan Black

University of Chicago - Harris School of Public Policy

Natalia Kolesnikova

University of Mississippi - Department of Economics

Lowell J. Taylor

Carnegie Mellon University - H. John Heinz III School of Public Policy and Management

Date Written: August 2014

Abstract

US labor markets have experienced rising inequality over the past 30 years — as evidenced by an increased gap in wages earned by high-skill workers (e.g., college graduates) and low-skill workers (e.g., high school graduates). Empirical evidence documenting this evolution of inequality comes from studies that assess wage-education gradients at the national level. But of course people work in local labor markets that differ in important ways. We provide a theoretical framework for evaluating inequality changes when individuals work in local labor markets, and we give an empirical reassessment of inequality changes in light of the insights that emerge from our framework.

Suggested Citation

Black, Dan and Kolesnikova, Natalia and Taylor, Lowell J., Local Labor Markets and the Evolution of Inequality (August 2014). Annual Review of Economics, Vol. 6, pp. 605-628, 2014. Available at SSRN: https://ssrn.com/abstract=2477753 or http://dx.doi.org/10.1146/annurev-economics-080213-040816

Dan Black (Contact Author)

University of Chicago - Harris School of Public Policy ( email )

1155 East 60th Street
Chicago, IL 60637
United States

Natalia Kolesnikova

University of Mississippi - Department of Economics

371 Holman Hall
University, MS 38677
United States

Lowell J. Taylor

Carnegie Mellon University - H. John Heinz III School of Public Policy and Management ( email )

Pittsburgh, PA 15213-3890
United States
412-268-3278 (Phone)
412-268-7036 (Fax)

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