Experience Stern | Faculty & Research

Excerpt from The Economist -- "...the paper shows that the benefits of scale are not shared equally among all workers. Using data on wages at British firms, they divide workers into nine groups according to how skilled they are. Over time, they find that the proportional difference in wages between the groups grows as firms get bigger. This trend is driven entirely by a rising gap between wages at the top compared with the middle and bottom of the distribution. As the authors note, this is very similar to the trend in income inequality in America and Britain as a whole since the 1990s, when pay for low and median earners began to stagnate."

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Additional coverage appeared on Al Jazeera, Marginal Revolution, Washington Center for Equitable Growth and Vox.