## Divergence in Post-Pandemic Earnings Growth: Evidence from Micro Data

_IMF Working Papers, October 11, 2024_

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**Canonical URL:** [Divergence in Post-Pandemic Earnings Growth: Evidence from Micro Data](https://www.imf.org/en/publications/wp/issues/2024/10/11/divergence-in-post-pandemic-earnings-growth-evidence-from-micro-data-556261)

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## Bibliographic details
- Authors: Sophia Chen, Do Lee
- Published: October 11, 2024
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798400291814.001

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### Key findings
- Earnings grew faster in counties that were less severely impacted at the onset of the pandemic.
- The divergence in earnings growth was substantial and persistent.
- Divergence was particularly pronounced for:
  - lower-paid workers,
  - nonmanagerial workers,
  - workers in smaller firms.
- Both wage increases and additional hours contributed to the observed earnings growth.
- Evidence is consistent with a job-ladder framework:
  - labor market competition drives dispersion of earnings across counties,
  - labor markets that are strong compress earnings among workers within those counties.
- Findings provide a microfoundation for the wage Phillips curve and have direct implications for stabilization policies.

### Data and scope
- Uses a comprehensive employer-employee dataset to examine post-pandemic worker earnings in the US.
- Subject areas: Labor, Labor force, Labor markets, Unemployment, Wages.
- Keywords include: Earnings, Earnings growth, employer-employee dataset, Global, IMF working paper No. 2024/222, Labor force, labor market competition, Labor Market Conditions, Labor markets, micro data, North America, Pandemic, Unemployment, Wage, Wages.

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_Source: https://www.imf.org/en/publications/wp/issues/2024/10/11/divergence-in-post-pandemic-earnings-growth-evidence-from-micro-data-556261_