Working Paper: NBER ID: w28475
Authors: Ioana Marinescu; Yue Qiu; Aaron Sojourner
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: No keywords provided
JEL Codes: J28; J31; J32; J33; J83; K31; K42
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| average wage increase (J31) | decrease in labor rights violations (J83) |
| average wage increase (J31) | decrease in fines per dollar of pay (J33) |
| reduced labor market concentration (J49) | lower violation rates (K42) |
| increased union coverage (J58) | lower violation rates (K42) |
| average wage increase (J31) | lower violation rates (K42) |