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date: 25 February 2020

Abstract and Keywords

This article focuses on the relationship of employer behaviour to labour market inequalities. Matched employer-employee data are casting an important new light on how variation in wage setting practices across firms can affect the structure of earnings and earnings mobility. It shows that very different wages are paid to equivalent labour across and within firms. It also argues that policies targeting firm selection of workers may affect inequality as much as policies of training and education.

Keywords: employer behaviour, labour market inequalities, firm selection, wage setting, earnings mobility

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