Does size of local labour markets affect wage inequality? a rank-size rule of income distribution
利用瑞典全部人口数据,分析地方劳动力市场规模对工资不平等的影响,发现人口规模显著增加不平等,并检验了劳动力多样化、人力资本、迁移等解释因素。
The questions addressed in this paper are: (i) does wage inequality increase with local population size, and if so, (ii) what are possible factors behind this increase? In a cross-section analysis of Swedish local labour markets using unique full population data, the article shows that urban scale, i.e. size of local population, has significant positive effects on wage inequality. Testing for potential explanations, labour market diversification, human capital, migration, age structure and employment are shown to be significantly associated with inequality. Given these effects, the article raises the question of how to understand and incorporate scale effects into models of long-term change in wage inequality.