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The butcher, the brewer, or the baker: The role of occupations in explaining wage inequality

Abstract:

Google does not pay its canteen chefs the same premium as it does its software engineers; there is heterogeneity in pay premia within a firm. To study the implications of this observation, we estimate a two-way, worker-job, fixed effect model that builds upon the canonical model by Abowd et al. (1999) by allowing for within-firm heterogeneity. Estimating our model on UK administrative data, we find that even if workers, and firms, were identical, 25% of current log-wage variance would remain,...

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Publication status:
Published

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Institution:
University of Oxford
Division:
SSD
Department:
Economics
Role:
Author
More by this author
Institution:
University of Oxford
Division:
SSD
Department:
Economics
Role:
Author
Publisher:
University of Oxford Publisher's website
Series:
Department of Economics Discussion Paper Series
Article number:
939
Publication date:
2021-06-15
ISSN:
1471-0498
Paper number:
939
Language:
English
Pubs id:
1182616
Local pid:
pubs:1182616
Deposit date:
2021-06-18

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