Employer characteristics impact wage growth, fueling inequality in the workforce.
Employers like large firms and those with high exports or fewer temporary workers tend to give low-wage workers higher pay raises. Having many low-paid colleagues can slow down wage growth for both low-wage and higher-wage workers. Some employers only offer higher wage growth to higher-wage workers. This shows that where you work can affect how much your pay increases, leading to differences in wage growth between low-wage and higher-wage workers.