Wage Dispersion over the Business Cycle

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

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
Volume181
Pages (from-to)17-21
Number of pages5
ISSN0165-1765
DOIs
Publication statusPublished - Aug 2019

Keywords

  • Wage dispersion
  • Business cycles

Cite this