Labor Market Information: Win-Win Network Community of Practice

Industries with Unstable Paychecks

Posted by LMI Win-Win Network - On April 08, 2013 (EST)

Industries with Unstable Paychecks

An American Enterprise Institute study of earnings instability by industry ranks construction, utilities, and professional services as those that pay the least reliable earnings, and management services, transportation, and accommodation and food services as the most stable. The study concludes that employees have little control over unstable earnings, and that lower-paid workers face more than twice the earnings instability of their higher-paid coworkers.

Author Michael Strain, citing previous findings that the rise in earnings instability since 1970 accounts for nearly one-third of rising earnings inequality, used U.S. Census Bureau Local Employment Dynamics (LED) data (1996-2005) to match employees with their firms. He also restricted the sample to employees with considerable tenure in the firm, to minimize the likelihood that earnings instability would be attributable to worker characteristics.

The full study is available at ”Do volatile firms pay volatile earnings?”, with a summary at ”Do volatile firms pay volatile earnings?” summary.

Complete industry data can be found in table 6 near the end of the full study, while the summary helpfully ranks the industries from most to least volatile.




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Modified On : April 08, 2013
Type : Thread
Viewed : 562
In Relation : Compensation and Income


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