[MCN] I have the pdf : Income inequality in high-income nations

[Lance Olsen]

PNAS first published April 13, 2020 https://doi.org/10.1073/pnas.1918249117 <https://doi.org/10.1073/pnas.1918249117>
Rising between-workplace inequalities in high-income countries

Donald Tomaskovic-Devey,  View ORCID Profile <http://orcid.org/0000-0001-9151-6659>Anthony Rainey,  View ORCID Profile <http://orcid.org/0000-0001-5420-1420>Dustin Avent-Holt,  View ORCID Profile <http://orcid.org/0000-0002-7103-7252>Nina Bandelj,  View ORCID Profile <http://orcid.org/0000-0002-3068-6627>István Boza,  View ORCID Profile <http://orcid.org/0000-0003-0554-9783>David Cort,  View ORCID Profile <http://orcid.org/0000-0003-3199-8144>Olivier Godechot,  View ORCID Profile <http://orcid.org/0000-0002-8957-032X>Gergely Hajdu,  View ORCID Profile <http://orcid.org/0000-0003-3660-9996>Martin Hällsten,  View ORCID Profile <http://orcid.org/0000-0003-4271-6528>Lasse Folke Henriksen,  View ORCID Profile <http://orcid.org/0000-0001-8783-0362>Are Skeie Hermansen,View ORCID Profile <http://orcid.org/0000-0002-4394-2167>Feng Hou,  View ORCID Profile <http://orcid.org/0000-0002-9784-1206>Jiwook Jung, Aleksandra Kanjuo-Mrčela,  View ORCID Profile <http://orcid.org/0000-0001-9002-2040>Joe King,  View ORCID Profile <http://orcid.org/0000-0002-5313-7006>Naomi Kodama,  View ORCID Profile <http://orcid.org/0000-0003-0273-5505>Tali Kristal,  View ORCID Profile <http://orcid.org/0000-0002-6616-3940>Alena Křížková,  View ORCID Profile <http://orcid.org/0000-0001-8751-5741>Zoltán Lippényi,  View ORCID Profile <http://orcid.org/0000-0002-6636-7097>Silvia Maja Melzer,  View ORCID Profile <http://orcid.org/0000-0003-4317-9904>Eunmi Mun, Andrew Penner, Trond Petersen, Andreja Poje, Mirna Safi,  View ORCID Profile <http://orcid.org/0000-0002-1859-4703>Max Thaning, and  View ORCID Profile <http://orcid.org/0000-0002-2370-1956>Zaibu Tufail
Significance
Understanding the causes of rising inequality is of concern in many countries. Using administrative data, we find that the share of inequality that is between workplaces is growing in 12 of 14 countries examined, and in no country has it fallen. Countries with declining employment protections see growth in both between- and within-workplace inequalities, but this impact is stronger for between-workplace inequalities. These results suggest that to reduce market income inequality requires policies that raise the bargaining power of lower-skilled workers. The widespread rise in between-workplace inequality additionally suggests policy responses that target the increasing market power of firms in concentrated markets as well as curb the ability of powerful firms to outsource low skill employment.

Abstract

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.

inequality <https://www.pnas.org/keyword/inequality>workplaces <https://www.pnas.org/keyword/workplaces>administrative data <https://www.pnas.org/keyword/administrative-data>earnings <https://www.pnas.org/keyword/earnings>institutions <https://www.pnas.org/keyword/institutions>

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A core question: What is “resilience”?

2018 — “Resilience is a popular narrative for conservation and provides an opportunity to communicate optimism that ecosystems can recover and rebound from disturbances.” (Emily S. Darling and Isabelle M. Côté, Science, March 2, 2018). 

2014 — “Emerging from a wide range of disciplines, resilience in policy-making has often been based on the ability of systems to bounce back to normality, drawing on engineering concepts. This implies the return of the functions of an individual, household, community or ecosystem to previous conditions, with as little damage and disruption as possible following shocks and stresses”  (Tanner et al, Nature Climate Change,  December 18, 2014). 

1938 — Resilience. 1- The act or power of springing back to a former position or shape. 2. The quantity of work given back by a body that is compressed to a certain limit and then allowed to recover itself, as a spring under pressure suddenly relaxed.”  (Funk & Wagnall’s New Standard Dictionary of the English Language, vol.2, M-Z 1938

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