scholarly journals These Unequal States: Corporate Organization and Income Inequality in the United States

2016 ◽  
Vol 62 (2) ◽  
pp. 304-340 ◽  
Author(s):  
J. Adam Cobb ◽  
Flannery G. Stevens
Keyword(s):  
United States ◽  
Labor Market ◽  
Income Inequality ◽  
Large Firm ◽  
Negative Relationship ◽  
Social Comparisons ◽  
The United States ◽  
Large Firms ◽  
Racially Diverse ◽  
Wage Compression

In an analysis of data on employment in the 48 contiguous United States from 1978 to 2008, we examine the connection between organizational demography and rising income inequality at the state level. Drawing on research on social comparisons and firm boundaries, we argue that large firms are susceptible to their employees making social comparisons about wages and that firms undertake strategies, such as wage compression, to help ameliorate their damaging effects. We argue that wage compression affects the distribution of wages throughout the broader labor market and that, consequently, state levels of income inequality will increase as fewer individuals in a state are employed by large firms. We hypothesize that the negative relationship between large-firm employment and income inequality will weaken when large employers are more racially diverse and their workers are dispersed across a greater number of establishments. Our results show that as the number of workers in a state employed by large firms declines, income inequality in that state increases. When these firms are more racially diverse, however, the negative relationship between large-firm employment and income inequality weakens. These results point to the importance of considering how corporate demography influences the dispersion of wages in a labor market.

Time’s Up! Shorter Hours, Public Policy, and Time Flexibility as an Antidote to Youth Unemployment

2018 ◽  
Author(s):  
Katherine Eva Maich ◽  
Jamie K. McCallum ◽  
Ari Grant-Sasson
Keyword(s):  
United States ◽  
Public Policy ◽  
Labor Market ◽  
Youth Unemployment ◽  
The United States ◽  
Employment Relationships ◽  
Gig Economy ◽  
Hours Of Work ◽  
The Relationship ◽  
Work Scheduling

This chapter explores the relationship between hours of work and unemployment. When it comes to time spent working in the United States at present, two problems immediately come to light. First, an asymmetrical distribution of working time persists, with some people overworked and others underemployed. Second, hours are increasingly unstable; precarious on-call work scheduling and gig economy–style employment relationships are the canaries in the coal mine of a labor market that produces fewer and fewer stable jobs. It is possible that some kind of shorter hours movement, especially one that places an emphasis on young workers, has the potential to address these problems. Some policies and processes are already in place to transition into a shorter hours economy right now even if those possibilities are mediated by an anti-worker political administration.

scholarly journals Firm Size and Employment during the Pandemic

2021 ◽  
Vol 7 ◽  
pp. 237802312199260
Author(s):  
Ken-Hou Lin ◽  
Carolina Aragão ◽  
Guillermo Dominguez
Keyword(s):  
United States ◽  
Labor Market ◽  
Firm Size ◽  
The United States ◽  
Market Concentration ◽  
Job Security ◽  
Wage Premium ◽  
Small Enterprises ◽  
Policy Responses ◽  
Industrial Context

Previous studies have established that firm size is associated with a wage premium, but the wage premium has declined in recent decades. The authors examine the risk for unemployment by firm size during the initial outbreak of coronavirus disease 2019 in the United States. Using both yearly and state-month variation, the authors find greater excess unemployment among workers in small enterprises than among those in larger firms. The gaps cannot be entirely attributed to the sorting of workers or to industrial context. The firm size advantage is most pronounced in sectors with high remotability but reverses in the sectors most affected by the pandemic. Overall, these findings suggest that firm size is linked to greater job security and that the pandemic may have accelerated prior trends regarding product and labor market concentration. They also point out that the initial policy responses did not provide sufficient protection for workers in small and medium-sized businesses.

Trust in Government and the American Public’s Responsiveness to Rising Inequality

2019 ◽  
Vol 73 (4) ◽  
pp. 790-804 ◽  
Author(s):  
David Macdonald
Keyword(s):  
United States ◽  
Public Opinion ◽  
Income Inequality ◽  
State Level ◽  
Political Trust ◽  
The United States ◽  
Trust In Government ◽  
Combine Data ◽  
Election Studies ◽  
The Relationship

The United States has become increasingly unequal. Income inequality has risen dramatically since the 1970s, yet public opinion toward redistribution has remained largely unchanged. This is puzzling, given Americans’ professed concern regarding, and knowledge of, rising inequality. I argue that trust in government can help to reconcile this. I combine data on state-level income inequality with survey data from the Cumulative American National Election Studies (CANES) from 1984 to 2016. I find that trust in government conditions the relationship between inequality and redistribution, with higher inequality prompting demand for government redistribution, but only among politically trustful individuals. This holds among conservatives and non-conservatives and among the affluent and non-affluent. These findings underscore the relevance of political trust in shaping attitudes toward inequality and economic redistribution and contribute to our understanding of why American public opinion has not turned in favor of redistribution during an era of rising income inequality.

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