Social Sciences
8 years ago

Male workers' earnings inequality linked to individual choices, not labor market.

Contributions to economic analysis
The Growth in Male Earnings Inequality, 1973–1988: The Role of Earnings Capacity and Utilization
Robert Haveman, Lawrence Buron

Paper Summary

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The article discusses how male earnings inequality has increased since the 1970s. The researchers found that this increase is not mainly due to changes in job opportunities, but rather to individual choices about working hours and wages. They used data from surveys to analyze changes in both the capacity to earn money and how effectively that capacity is used. The results suggest that personal decisions about work play a significant role in the growing gap in male earnings.