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Activity Number: 563
Type: Contributed
Date/Time: Wednesday, August 12, 2015 : 11:35 AM to 12:20 PM
Sponsor: Government Statistics Section
Abstract #317912
Title: Decomposing Wage Inequality Using OES Data
Author(s): Elizabeth Cross*
Companies: Bureau of Labor Statistics
Keywords: Wage inequality ; Shapley decomposition ; 75th/25th percentile wage ratio
Abstract:

Wage inequality, as measured by the national 75th/25th percentile wage ratio, grew 6.6% between 2006 and 2014. Changes in occupational wage and composition contribute to this rising inequality in three ways: changes in overall wages of occupations, shifts in national employment shares of occupations, and changes in wage distributions within occupations. This article applies a modified Shapley decomposition to data from the Occupational Employment Statistics (OES) program at the Bureau of Labor Statistics (BLS) to quantify how these factors have contributed to the increase in wage inequality. The paper shows that all three occupational components contribute to the rising inequality, and demonstrates that it is essential to account for all three factors when discussing inequality.


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