Are changes in the dispersion of hours worked a cause of increased earnings inequality?

IZA Journal of European Labor Studies

Table 3 Decomposition of earnings dispersion: absolute and relative contributions

Year	Country	I _y	I _w	I _h	ρ	RC_w	RC_h	RC_ρ
1991	USA	0.175	0.114	0.045	0.017	0.649	0.256	0.095
		(0.004)	(0.002)	(0.002)	(0.002)
	UK	0.255	0.131	0.094	0.030	0.514	0.370	0.116
		(0.007)	(0.004)	(0.004)	(0.005)
	DE	0.174	0.118	0.055	0.000	0.680	0.319	0.001
		(0.004)	(0.003)	(0.002)	(0.003)
	FR	0.118	0.096	0.034	−0.013	0.818	0.292	−0.109
		(0.002)	(0.001)	(0.001)	(0.001)
1995	USA	0.225	0.165	0.039	0.021	0.734	0.174	0.092
		(0.004)	(0.003)	(0.001)	(0.002)
	UK	0.260	0.136	0.091	0.033	0.524	0.350	0.126
		(0.009)	(0.005)	(0.004)	(0.005)
	DE	0.147	0.103	0.060	−0.016	0.702	0.409	−0.111
		(0.004)	(0.004)	(0.002)	(0.004)
	FR	0.133	0.101	0.040	−0.008	0.759	0.300	−0.060
		(0.002)	(0.001)	(0.001)	(0.001)
2000	USA	0.218	0.161	0.034	0.022	0.742	0.156	0.102
		(0.004)	(0.003)	(0.001)	(0.002)
	UK	0.226	0.125	0.077	0.023	0.554	0.343	0.103
		(0.007)	(0.005)	(0.004)	(0.004)
	DE	0.185	0.101	0.068	0.017	0.543	0.367	0.090
		(0.004)	(0.002)	(0.002)	(0.002)
	FR	0.131	0.093	0.040	−0.001	0.707	0.302	−0.009
		(0.002)	(0.001)	(0.001)	(0.001)
2007	USA	0.223	0.173	0.033	0.017	0.778	0.147	0.075
		(0.004)	(0.004)	(0.001)	(0.002)
	UK	0.227	0.134	0.064	0.029	0.592	0.282	0.126
		(0.009)	(0.006)	(0.003)	(0.004)
	DE	0.230	0.123	0.082	0.025	0.535	0.358	0.107
		(0.006)	(0.003)	(0.003)	(0.003)
	FR	0.119	0.079	0.041	−0.001	0.664	0.346	−0.010
		(0.003)	(0.002)	(0.002)	(0.003)
2012	USA	0.247	0.183	0.037	0.027	0.741	0.151	0.109
		(0.005)	(0.004)	(0.001)	(0.002)
	UK	0.248	0.147	0.073	0.028	0.593	0.294	0.112
		(0.004)	(0.003)	(0.001)	(0.002)
	DE	0.229	0.122	0.077	0.030	0.534	0.337	0.129
		(0.006)	(0.004)	(0.003)	(0.003)
	FR	0.137	0.086	0.042	0.010	0.626	0.303	0.071
		(0.004)	(0.002)	(0.001)	(0.002)

Note: Inequality in earnings, wages, and hours is measured by the MLD and denoted by I _y,I _w, and I _h, respectively. ρ denotes the correlation term, while RC_i is the relative distribution of wages, hours, and the correlation term