#occupationalClassification

Dennis Alexis Valin Dittrichdavdittrich@fediscience.org
2025-10-21

The Role of Firms and Occupations in Wage Inequality d.repec.org/n?u=RePEc:zbw:vfsc
"… find that between-occupation job variance is roughly as important as within-occupation between-firm variation, and that between-occupation sorting is significantly more important than within-occupation between-firm sorting in our context.
… 21% of total log-wage variance can be attributed to between-occupation pay variance and sorting of workers between occupations, while 9% can be attributed to variance within occupations between firms and sorting between workers and firms within occupations.
… suggests that occupation-based factors, such as #heterogeneity in skill prices, are quantitatively more important than firm pay dispersion.
… in higher-wage occupations and larger labor markets firm-level heterogeneity is relatively more important, although the importance of firm-worker sorting does not vary.
… individual-level differences are significantly more important in both higher-wage occupations and larger labor markets."
#LaborMarkets #wages #occupationalClassification #skills

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