https://9p7pzq3jbl.execute-api.us-east-1.amazonaws.com/ProdStage Skip to main content
Publications
Advanced Search

View metadata

dc.titleOwnership Networks and Earnings Inequality
dc.contributor.authorHuneeus, Federico
dc.contributor.authorLarrain, Borja
dc.contributor.authorLarrain, Mauricio
dc.contributor.authorPrem, Mounu
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.coverageChile
dc.date.available2022-05-20T00:05:00
dc.date.issue2022-05-20T00:05:00
dc.description.abstractWe use matched employer-employee data together with data on the ownership networks of Chilean firms to document a novel relationship between inequality in labor income and ownership structures. Exploiting transitions of firms in and out of networks, we show that network affiliation is associated with higher inequality along two dimensions. First, network firms pay higher average wages than stand-alone firms, increasing between-firm inequality. Second, the dispersion of wages within a network firm is higher than within a stand-alone firm, increasing within-firm inequality. The effects are driven by increases in the wages of top workers, and by the entry of new top workers. Our findings shed light on the relationship between ownership structures and the distribution of labor income in the economy.
dc.format.extent50
dc.identifier.doihttp://dx.doi.org/10.18235/0004265
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Ownership-Networks-and-Earnings-Inequality.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectSmall Business
dc.subjectLabor Force
dc.subjectEquality
dc.subjectWage
dc.subjectSkills
dc.subjectForest Resource
dc.subjectLabor
dc.subjectEconomy
dc.subjectIncome Distribution
dc.subjectLabor Market
dc.subject.jelcodeG32 - Financing Policy • Financial Risk and Risk Management • Capital and Ownership Structure • Value of Firms • Goodwill
dc.subject.jelcodeJ31 - Wage Level and Structure • Wage Differentials
dc.subject.keywordsEarnings premium;Earnings inequality;Business groups;Ownership
dc.typeWorking Papers
idb.identifier.pubnumberIDB-WP-01340
idb.operationRG-K1198
Return to Publication