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Changes in the Distribution of Wages, 1940-1950: The Public vs. the Private Sector / Robert A. Margo, T. Aldrich Finegan.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Margo, Robert A.
Contributor:
National Bureau of Economic Research.
Finegan, T. Aldrich.
Series:
Working Paper Series (National Bureau of Economic Research) no. w5389.
NBER working paper series no. w5389
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Other Title:
Changes in the Distribution of Wages, 1940-1950
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 1995.
Summary:
Between 1940 and 1950 wage differentials within and between labor market groups narrowed significantly - the so-called 'Great Compression'. This paper disaggregates the Great Compression into its public and private components. Wage compression in the public sector, along with a decline in the pay premia received by public sector workers, explains about 40 percent of aggregate wage compression in the 1940s. The experience of the 1940s stands in stark contrast with that of the past two decades, in which a rigid public sector wage structure has dampened increases in aggregate wage inequality.
Notes:
Print version record
December 1995.

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