Those in the private sector tend to make more money on average, but they also experience greater volatility in earnings attributable to wage variation and unemployment.
This introduced a new source of wage variation.
This advantage is exploited in the present article by relating task intensities variation with wage variation.
Thus, even after controlling for occupation, wage variation is still observable.
Overall, the ESMs are good for exploring wage variation, which is difficult to correlate with observables.
Thus, federal minimum variation is not swept out by the period fixed effects, and therefore the cross-border minimum wage variation will be correlated with the actual state minimum wage variation.
When looking at the total wage variation explained, however, it is interesting to note that the consideration of all these characteristics accounts for around 33% of the total wage variation in the sample.
To see how the above conclusions change when there is wage variation between workers who have been hired for the same job, we consider two possible sources of within-job wage variation.
Observing the relation between these measures, and in particular the share of explained wage heterogeneity variation, provides insights into whether a task approach can explain part of the unrevealed wage variation across a priori similar individuals.
However, it should be pointed out that estimates of Mincerian wage regressions and equilibrium search models account for only a limited amount of the total observed wage variation.
