School of Economics

 Invites you to a

Microeconometrics & Public Policy seminar presented by

Jordan J. Norris

(New York University Abu Dhabi)

Spatial Wage Inequality within the Firm

Friday 11 August 2023

12.00pm – 1.00pm

Seminar Room 441 – Level 4
A02 Social Sciences Building

Camperdown Campus
The University of Sydney NSW 2006

We analyze the role of location in explaining US wage inequality, for workers employed in the same firm but at establishments in different cities. We apply a variance decomposition to a massive and detailed dataset from Glassdoor, the anonymous company review and salary platform. The explanatory power of city for nominal wages declines by 83\% for workers in the same firm compared to all workers. To understand why the importance of location diminishes within the firm, we utilize a fixed effect model of wage determination. This reveals that firms locating their establishments in similar cities, particularly along the lines of cost of living, is just as important as wage variation across firms for this decline. We incorporate firm-wide wage anchoring across space in the model and find it plays a minor role.

For further information contact: Microeconometrics & Public Policy Seminar Coordinator
Dr Gregor Pfeifer & Dr Rebecca McKibbin

For all upcoming seminars in School of Economics see Our events and Calendar