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The Evolution of Employment Dispersion


Ayushi Narayan Economist, Community Development and Engagement
Ryan Nunn Assistant Vice President, Community Development and Engagement
The Evolution of Employment Dispersion


Labor market inequality encompasses both dispersion in earnings and employment. While earnings dispersion is relatively straightforward to assess, employment dispersion presents difficulties. We offer a new approach that uses observable worker-level information to predict employment propensities, then tracks changes in employment at different points in the predicted distribution. This approach is useful for a few purposes: first, to provide a more comprehensive picture of labor market inequality; second, to identify (in a fine-grained way) groups with relatively low employment propensities; and third, to facilitate explorations of how macroeconomic conditions (e.g., tight labor markets) may affect labor market inequality.