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Inequality Between the Employed and the Non‐employed

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This chapter considers trends in the earnings distribution across the whole workingage population, i.e. workers and non‐workers taken together. It examines and quantifies the respective impacts of two forces: changes in wage disparities among workers and changes in non‐employment rates. The chapter relates such inequality dynamics to macroeconomic developments. It analyses the effects on employment of globalisation, evolving technologies, and institutional and policy changes, and combines the results of the analysis with findings on the determinants of wage inequality trends. The chapter then estimates the overall effect of each determinant on changes in earnings inequalities across the whole working‐age population.

Document Type: Review Article

Publication date: December 1, 2011

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