Within-job gender pay inequality in 15 countries.

Extant research on the gender pay gap suggests that men and women who do the same work for the same employer receive similar pay, so that processes sorting people into jobs are thought to account for the vast majority of the pay gap. Data that can identify women and men who do the same work for the same employer are rare, and research informing this crucial aspect of gender differences in pay is several decades old and from a limited number of countries. Here, using recent linked employer-employee data from 15 countries, we show that the processes sorting people into different jobs account for substantially less of the gender pay differences than was previously believed and that within-job pay differences remain consequential.

The organizational production of earnings inequalities, Germany 1995-2010.

Germany has experienced sharply rising earnings inequalities, both between and within workplaces. Working from prior literature on rising employment dualization and the fissuring of workplaces into high and low wage employers, we explore a set of organizational explanations for rising between and within workplace inequality focusing on the role of employment dualization, skill segregation/complexity, and firm fissuring. We describe and model these hypothesized processes with administrative data on a large random sample panel of German workplaces. We find that rising inequalities are associated with polarization in industrial wage rates and the birth of new low wage workplaces, as well as increased establishment skill specialization and the growth of part-time jobs in workplace divisions of labor. We conclude with recommendations for future research that directly examines more proximate mechanisms and their relative importance in different institutional contexts.

Rising between-workplace inequalities in high-income countries.

It is well documented that earnings inequalities have risen in many high-income countries. Less clear are the linkages between rising income inequality and workplace dynamics, how within- and between-workplace inequality varies across countries, and to what extent these inequalities are moderated by national labor market institutions. In order to describe changes in the initial between- and within-firm market income distribution we analyze administrative records for 2,000,000,000+ job years nested within 50,000,000+ workplace years for 14 high-income countries in North America, Scandinavia, Continental and Eastern Europe, the Middle East, and East Asia. We find that countries vary a great deal in their levels and trends in earnings inequality but that the between-workplace share of wage inequality is growing in almost all countries examined and is in no country declining. We also find that earnings inequalities and the share of between-workplace inequalities are lower and grew less strongly in countries with stronger institutional employment protections and rose faster when these labor market protections weakened. Our findings suggest that firm-level restructuring and increasing wage inequalities between workplaces are more central contributors to rising income inequality than previously recognized.