Wage Inequality and Labor Rights Violations

48 Pages Posted: 30 Sep 2020 Last revised: 10 Feb 2021

See all articles by Ioana Elena Marinescu

Ioana Elena Marinescu

University of Pennsylvania - School of Social Policy & Practice; National Bureau of Economic Research (NBER)

Yue Qiu

Temple University

Aaron Sojourner

W.E. Upjohn Institute for Employment Research; University of Minnesota; IZA Institute of Labor Economics

Multiple version iconThere are 3 versions of this paper

Date Written: August 13, 2020

Abstract

Wage inequality does not fully capture differences in job quality. Jobs also differ along other key dimensions, including the prevalence of labor rights violations. We construct novel measures of labor violation rates using data from federal agencies. Within local industries over time, a 10\% increase in the average wage is associated with a 0.15% decrease in the number of violations per employee and a 4% decrease in fines per dollar of pay. Reduced labor market concentration and increased union coverage rate are also associated with reductions in labor violations. Overall, labor violations are regressive: they increase inequality in job quality.

Keywords: wage differentials, inequality, worker power, labor rights

JEL Classification: J31, J83, J32, J33, J28, K31, K42

Suggested Citation

Marinescu, Ioana Elena and Qiu, Yue and Sojourner, Aaron J., Wage Inequality and Labor Rights Violations (August 13, 2020). Available at SSRN: https://ssrn.com/abstract=3673495 or http://dx.doi.org/10.2139/ssrn.3673495

Ioana Elena Marinescu (Contact Author)

University of Pennsylvania - School of Social Policy & Practice ( email )

3701 Locust Walk
Philadelphia, PA 19104-6214
United States

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Yue Qiu

Temple University ( email )

Philadelphia, PA 19122
United States

Aaron J. Sojourner

W.E. Upjohn Institute for Employment Research ( email )

300 South Westnedge Avenue
Kalamazoo, MI 49007-4686
United States

University of Minnesota

Carlson School of Management
MN
United States

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

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