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> Sorting and Wage Inequality: Stronger sorting contributes to wage inequality. High-skill workers employed by highly productive firms tend to earn substantiall
by Racing0461 3y ago
> Sorting and Wage Inequality: Stronger sorting contributes to wage inequality. High-skill workers employed by highly productive firms tend to earn substantially more, while low-skilled workers at less productive firms earn less.
This is not wage inequality because these are not equal things. More productive employees are not equal to less productive ones. Productive men are not equal to less productive (article's words not mien) women. If 2 different things are not equal, then there is no inequality.
> Therefore, stronger sorting contributes to widening the gap between high and low earners.
The gap between labor and labor is insignificant compared to the gap between labor and capital.
- BirdieNZ 3y ago> This is not wage inequality because these are not equal things. More productive employees are not equal to less productive ones. Productive men are not equal to less productive (article's words not mien) women. If 2 different things are not equal, then there is no inequality. The paper is saying that higher-earning men are more likely to work for companies which pay higher wages (to all their employees). Put another way, 100 men who are equally high-earning across their work experience are not randomly distributed in high- and low- wage companies, but are more concentrated in high-wage companies. In the HN context, maybe it makes sense to say "higher-earning men are more likely to get jobs at FAANG rather than earn the same amount at Microsoft/some non-OpenAI startup/a bank".
- Racing0461 3y agoMicrosoft catching strays.