The Role of Establishments and the Concentration of Occupations in Wage Inequality

27 Pages Posted: 4 Sep 2015

See all articles by Elizabeth Weber Handwerker

Elizabeth Weber Handwerker

Bureau of Labor Statistics

James Spletzer

United States Department of Labor

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Abstract

This paper uses the microdata of the Occupational Employment Statistics (OES) Survey to assess the contribution of occupational concentration to wage inequality between establishments and its growth over time. We show that occupational concentration plays an important role in wage determination for workers, in a wide variety of occupations, and can explain some establishment-level wage variation. Occupational concentration is increasing during the 2000-2011 time period, although much of this change is explained by other observable establishment characteristics. Overall, occupational concentration can help explain a small amount of wage inequality growth between establishments during this time period.

Keywords: occupational concentration, establishments, wage inequality, employers, employer-employee microdata

JEL Classification: J31, D31, L11, D22, M12, M50

Suggested Citation

Handwerker, Elizabeth Weber and Spletzer, James, The Role of Establishments and the Concentration of Occupations in Wage Inequality. IZA Discussion Paper No. 9294. Available at SSRN: https://ssrn.com/abstract=2655334

Elizabeth Weber Handwerker (Contact Author)

Bureau of Labor Statistics ( email )

2 Massachusetts Avenue NE
Washington, DC 20212
United States

HOME PAGE: http://www.bls.gov/ers

James Spletzer

United States Department of Labor ( email )

2 Massachusetts Avenue, NE
Washington, DC 20212
United States
202-606-7393 (Phone)
202-606-4602 (Fax)

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