Wage Dispersion over the Business Cycle

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In this paper, I provide robust evidence that fluctuations in wage dispersion are independent of the business cycle, while residual wage dispersion, i.e. dispersion of wages within narrowly defined demographic and skill groups of workers, increases during booms and lessens during recessions. Moreover, I show that the procyclical fluctuations in residual wage dispersion are mainly generated by cyclical changes in the upper half of the residual wage distribution.
Original languageEnglish
JournalEconomics Letters
Pages (from-to)17-21
Number of pages5
Publication statusPublished - Aug 2019


  • Wage dispersion
  • Business cycles

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