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Hours Worked, Self‐Employment and Joblessness as Ingredients of Earnings Inequality

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This chapter broadens the focus from wage inequality among full‐time workers to earnings inequality among all workers. It accounts for the effects of adding parttime workers and the self‐employed and includes both groups in analyses of levels of and trends in the distribution of earnings. The chapter first identifies the contribution of self‐employment and its distributional patterns to inequality of annual earnings. It then examines whether trends in "prices", i.e. trends in hourly wage rates, have a lesser or greater impact on levels of and changes in inequality than trends in "quantities", i.e. trends in hours worked. In a second step, the chapter broadens the focus to the whole working‐age population and analyses to what extent shifts in joblessness affect estimates of an "overall" earnings distribution, i.e. including workers and the jobless.

Document Type: Review Article

Publication date: December 1, 2011


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