Arbeitspapier

Wage Inequality and Labor Rights Violations

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.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 14112

Classification
Wirtschaft
Wage Level and Structure; Wage Differentials
Labor Standards: Workers' Rights
Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
Compensation Packages; Payment Methods
Safety; Job Satisfaction; Related Public Policy
Labor Law
Illegal Behavior and the Enforcement of Law
Subject
wage differentials
inequality
worker power
labor rights

Event
Geistige Schöpfung
(who)
Marinescu, Ioana E.
Qiu, Yue
Sojourner, Aaron
Event
Veröffentlichung
(who)
Institute of Labor Economics (IZA)
(where)
Bonn
(when)
2021

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Marinescu, Ioana E.
  • Qiu, Yue
  • Sojourner, Aaron
  • Institute of Labor Economics (IZA)

Time of origin

  • 2021

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