Jobs , Workers and Changes in Earnings Dispersion

  title={Jobs , Workers and Changes in Earnings Dispersion},
  author={Simon Burgess and Julia Ingrid Lane and David Stevens},
The ‘fractal’ nature of the rise in earnings dispersion is one of its key features and remains a puzzle. In this paper, we offer a new perspective on the causes of changes in earnings dispersion, focusing on the role of labour reallocation. Once we drop the assumption that all firms pay a given worker the same, the allocation of workers to firms matters for the dispersion of earnings. This perspective highlights two new factors that can affect the dispersion of earnings: rates of job and worker… CONTINUE READING

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