%0 Report %A Briskar, Juraj %A Porto, Edoardo di %A Mora, José V. Rodriguez %A Tealdi, Cristina %T The Role of Industries in Rising Inequality %D 2023 %8 2023 Dec %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 16693 %U https://www.iza.org/index.php/publications/dp16693 %X We analyse thirty years of Italian private sector employment data (1985-2018) to study the dynamics of rising earnings inequality. The total variance surged by 10 log points, with 55% occurring between industries, particularly in a few low-paid service sectors. Workers with low earnings ability showed increased likelihood of working in industries with low average firm premium (sorting) together with other low-earning workers (segregation). Strikingly, parallels with the US emerge. In both, inequality increased predominantly between industries and concentrated within a small number of sectors. Italy's increase primarily stems from low-paying sectors, diverging from the more balanced growth observed in the US across high-paying and low-paying industries. Our findings suggest that despite institutional differences similar underlying forces are at work. %K earnings inequality %K industries %K sorting %K segregation