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• W2113073670 abstract "If high-wage employers are largely purchasing high-skill employees, then rising returns to skills should increase inequality between highand low-wage employers. We test this and related hypotheses with 40 years of detailed wage data from 228 large Midwestern employers and from 12 years of data from 42 New York employers. As seen in other datasets, wage inequality rises overall and between highand low-wage occupations. However, despite this rise in the returns to observable skills, inequality between highand low-wage employers is stable. Moreover, decreased sorting of observable skills does not explain the stability. In addition to skill differences, wage inequality between employers could be due to transitory shocks and errors. However, these employer wage differentials last many years and their persistence has not declined over time. While inconsistent with general human capital and transitory shocks as explanations for employer wage differences, these findings are consistent with a stable role for efficiency wage, compensating differences, and rent-sharing as determinants of compensation. As such, the findings also do not support the common assertion that employers’ wage structures have weakened due to increased dynamism in labor and product markets." @default.
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• W2113073670 date "2002-01-01" @default.
• W2113073670 modified "2023-09-26" @default.
• W2113073670 title "Do Rising Returns to Skills Affect Employer Wage Structures" @default.
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