Earnings Inequality Narrows for Young Workers Despite a Widening Wage Structure

THE QUARTERLY REVIEW OF ECONOMICS AND FINANCE, Vol. 35 No. 4, Winter 1995

Posted: 9 Jul 1998

See all articles by James F. Ragan

James F. Ragan

Kansas State University - Department of Economics

Bernt Bratsberg

Kansas State University - Department of Economics; University of Oslo - Ragnar Frisch Centre for Economic Research

Abstract

Inequality of wage rates has widened in the United States. But inequality of earnings also depends on the distribution of hours worked. If the distribution of hours contracts sufficiently, earnings inequality may narrow despite a widening wage structure. The present study examines recent trends in inequality for young workers and, consistent with the preceding scenario, finds that rising inequality of wage rates has been overwhelmed by declining inequality of hours worked. As a consequence, earnings inequality of young workers declined during the 1980s.

JEL Classification: E24

Suggested Citation

Ragan, James F. and Bratsberg, Bernt, Earnings Inequality Narrows for Young Workers Despite a Widening Wage Structure. THE QUARTERLY REVIEW OF ECONOMICS AND FINANCE, Vol. 35 No. 4, Winter 1995, Available at SSRN: https://ssrn.com/abstract=7203

James F. Ragan

Kansas State University - Department of Economics ( email )

Manhattan, KS 66502-4001
United States

Bernt Bratsberg (Contact Author)

Kansas State University - Department of Economics ( email )

Manhattan, KS 66502-4001
United States

University of Oslo - Ragnar Frisch Centre for Economic Research

Gaustadalleen 21
N-0349 Oslo
Norway

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
397
PlumX Metrics