Assessing the Determinants of Male Earnings Dispersion
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Abstract
This paper considers male earnings dispersion in the United Kingdom in four industries from 1973 to 1995. The analysis takes place in two stages. Firstly, earnings dispersion over time is split into two components: between-group earnings dispersion due to differing worker characteristics across the population; and within-group earnings dispersion, that is any remaining earnings dispersion after controlling for measurable worker characteristics. Secondly, that part of earnings dispersion which cannot be explained by observable worker characteristics is examined by industry using time series techniques to assess the impact of technological change; globalisation; female participation; immigration; and institutional changes upon remaining dispersion.