Does Job Polarization Explain the Rise in Earnings Inequality? Evidence from Europe

Earnings inequality and job polarization have increased significantly in several countries since the early 1990s. Using data from European countries covering a 20-year period, this paper provides new evidence that the decline of middle-skilled occu...

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Main Authors:	Bussolo, Maurizio, Torre, Ivan, Winkler, Hernan
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2018
Subjects:	INEQUALITY DECOMPOSITION ANALYSIS OCCUPATION FEMALE LABOR FORCE PARTICIPATION LABOR SKILLS INCOME DISTRIBUTION EDUCATIONAL ATTAINMENT POLARIZATION DECOMPOSITION
Online Access:	http://documents.worldbank.org/curated/en/822791543242066700/Does-Job-Polarization-Explain-the-Rise-in-Earnings-Inequality-Evidence-from-Europe http://hdl.handle.net/10986/30879

id	okr-10986-30879
recordtype	oai_dc
spelling	okr-10986-308792021-06-14T10:05:55Z Does Job Polarization Explain the Rise in Earnings Inequality? Evidence from Europe Bussolo, Maurizio Torre, Ivan Winkler, Hernan INEQUALITY DECOMPOSITION ANALYSIS OCCUPATION FEMALE LABOR FORCE PARTICIPATION LABOR SKILLS INCOME DISTRIBUTION EDUCATIONAL ATTAINMENT POLARIZATION DECOMPOSITION Earnings inequality and job polarization have increased significantly in several countries since the early 1990s. Using data from European countries covering a 20-year period, this paper provides new evidence that the decline of middle-skilled occupations and the simultaneous increase of high- and low-skilled occupations are important factors accounting for the rise of inequality, especially at the bottom of the distribution. Job polarization accounts for a large share of the increasing inequality between the 10th and the 50th percentiles, but it explains little or none of the increasing inequality between the 50th and 90th percentiles. Other important developments during this period, such as changing wage returns, higher educational attainment, and increased female labor force participation, account for a small portion of the changes in inequality. 2018-11-26T19:47:35Z 2018-11-26T19:47:35Z 2018-11 Working Paper http://documents.worldbank.org/curated/en/822791543242066700/Does-Job-Polarization-Explain-the-Rise-in-Earnings-Inequality-Evidence-from-Europe http://hdl.handle.net/10986/30879 English Policy Research Working Paper;No. 8652 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Europe
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	INEQUALITY DECOMPOSITION ANALYSIS OCCUPATION FEMALE LABOR FORCE PARTICIPATION LABOR SKILLS INCOME DISTRIBUTION EDUCATIONAL ATTAINMENT POLARIZATION DECOMPOSITION
spellingShingle	INEQUALITY DECOMPOSITION ANALYSIS OCCUPATION FEMALE LABOR FORCE PARTICIPATION LABOR SKILLS INCOME DISTRIBUTION EDUCATIONAL ATTAINMENT POLARIZATION DECOMPOSITION Bussolo, Maurizio Torre, Ivan Winkler, Hernan Does Job Polarization Explain the Rise in Earnings Inequality? Evidence from Europe
geographic_facet	Europe
relation	Policy Research Working Paper;No. 8652
description	Earnings inequality and job polarization have increased significantly in several countries since the early 1990s. Using data from European countries covering a 20-year period, this paper provides new evidence that the decline of middle-skilled occupations and the simultaneous increase of high- and low-skilled occupations are important factors accounting for the rise of inequality, especially at the bottom of the distribution. Job polarization accounts for a large share of the increasing inequality between the 10th and the 50th percentiles, but it explains little or none of the increasing inequality between the 50th and 90th percentiles. Other important developments during this period, such as changing wage returns, higher educational attainment, and increased female labor force participation, account for a small portion of the changes in inequality.
format	Working Paper
author	Bussolo, Maurizio Torre, Ivan Winkler, Hernan
author_facet	Bussolo, Maurizio Torre, Ivan Winkler, Hernan
author_sort	Bussolo, Maurizio
title	Does Job Polarization Explain the Rise in Earnings Inequality? Evidence from Europe
title_short	Does Job Polarization Explain the Rise in Earnings Inequality? Evidence from Europe
title_full	Does Job Polarization Explain the Rise in Earnings Inequality? Evidence from Europe
title_fullStr	Does Job Polarization Explain the Rise in Earnings Inequality? Evidence from Europe
title_full_unstemmed	Does Job Polarization Explain the Rise in Earnings Inequality? Evidence from Europe
title_sort	does job polarization explain the rise in earnings inequality? evidence from europe
publisher	World Bank, Washington, DC
publishDate	2018
url	http://documents.worldbank.org/curated/en/822791543242066700/Does-Job-Polarization-Explain-the-Rise-in-Earnings-Inequality-Evidence-from-Europe http://hdl.handle.net/10986/30879
_version_	1764473210658619392

Does Job Polarization Explain the Rise in Earnings Inequality? Evidence from Europe

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