Person: Barth, Erling
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Barth
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Erling
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Barth, Erling
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Publication It's Where You Work: Increases in Earnings Dispersion across Establishments and Individuals in the U.S.(University of Chicago Press, 2015) Barth, Erling; Bryson, Alex; Davis, James; Freeman, RichardThis paper links data on establishments and individuals to analyze the role of establishments in the increase in inequality that has become a central topic in economic analysis and policy debate. It decomposes changes in the variance of ln earnings among individuals into the part due to changes in earnings among establishments and the part due to changes in earnings within-establishments and finds that much of the 1970s-2010s increase in earnings inequality results from increased dispersion of the earnings among the establishments where individuals work. It also shows that the divergence of establishment earnings occurred within and across industries and was associated with increased variance of revenues per worker. Our results direct attention to the fundamental role of establishment-level pay setting and economic adjustments in earnings inequality.Publication Weathering the Great Recession: Variation in Employment Responses by Establishments and Countries(2016-07) Barth, Erling; Davis, James Allan; Freeman, Richard; Kerr, SariThis paper finds that US employment changed differently relative to output in the Great Recession and recovery than in most other advanced countries or in the US in earlier recessions. Instead of hoarding labor, US firms reduced employment proportionately more than output in the Great Recession, with establishments that survived the downturn contracting jobs massively. Diverging from the aggregate pattern, US manufacturers reduced employment less than output while the elasticity of employment to gross output varied widely among establishments. In the recovery, growth of employment was dominated by job creation in new establishments. The variegated responses of employment to output challenges extant models of how enterprises adjust employment over the business cycle.