Nathan Wilmers & Clem Aeppli, The Alignment of Earnings in Occupations and at U.S. Workplaces Increasingly Exacerbates Earnings Inequality, Wash. Cent. for Equitable Growth (Mar. 9, 2021). Introduction below:
A few common explanations dominate the discussion of rising earnings inequality in the United States. Automation and computerization, for example, have augmented many nonroutine white-collar jobs—meaning those jobs can pay more—while replacing more routine jobs. Tech pays off differently depending on your occupation. Another set of explanations of earnings inequality has to do with the types of employers, workplaces, or firms that make up the U.S. economy. Low-paying service-sector employers have multiplied, and manufacturers have deunionized, outsourced, or offshored, while a select few firms in finance, consulting, and tech pay disproportionately high wages. This last set of firms is made up of so-called superstar firms.
In short, where you work matters for earnings inequality, too—it’s not just what you do at work.