FDI and Relative Wage Inequality

2014 ◽  
pp. 101-137
Author(s):  
Sarbajit Chaudhuri ◽  
Ujjaini Mukhopadhyay
Keyword(s):  
Wage Inequality ◽  
Relative Wage

Skilled-Unskilled Wage Inequality, Growth of Skilled Labour and Development Policies

2014 ◽  
Vol 5 (1) ◽  
Author(s):  
Manash Ranjan Gupta ◽  
Priya Brata Dutta
Keyword(s):  
Steady State ◽  
Wage Inequality ◽  
Open Economy ◽  
Relative Wage ◽  
Agricultural Product ◽  
Skilled Workers ◽  
Current Output ◽  
Skilled Labour ◽  
Traded Goods ◽  
Unskilled Labour

AbstractThis paper develops a small open economy model with three sectors and four factors – land, unskilled labour, skilled labour and capital. Two of these three sectors produce final traded goods of which one sector produces an agricultural product using land and unskilled labour and another sector produces a manufacturing product using skilled labour and capital. The third sector, called education sector produces a service using skilled labour and capital as inputs; and this service transforms unskilled workers into skilled workers. The current output is added to the existing stock of skilled labour at the next point of time. The paper first analyses various comparative static effects on skilled-unskilled relative wage in the static model where no factor endowment changes over time. Next, it analyses the long-run equilibrium properties in the dynamic model with intertemporal accumulation of skilled labour; and derives various comparative steady state effects on skilled unskilled relative wage. Comparative steady-state effects appear to be stronger than the corresponding comparative static effects.

scholarly journals Institutional variation in occupational licensing and its consequences for wages. A distributional analysis for the USA and Germany.

2021 ◽  
Author(s):  
Andreas Haupt
Keyword(s):  
Labor Markets ◽  
Wage Inequality ◽  
Economic Consequences ◽  
Wage Distribution ◽  
Relative Wage ◽  
Occupational Licensing ◽  
Wage Premiums ◽  
Institutional Differences ◽  
The Usa ◽  
Institutional Variation

Licensing is a central institution in labor markets worldwide. Using the example of the USA and Germany, this study shows strong institutional differences between licensing systems that are of great importance for wage distribution but are not yet part of the debate about the economic consequences of licensing. The two countries differ significantly in terms of the rules of entry into occupational labor markets, the competencies of occupational boards, and the combination of licensing with price regulation. I claim that licensing systems change the bargaining power and bargaining scope for wages, which leads to different wage premiums across the distribution and different consequences for wage inequality. Using novel license data, I empirically show that licensing is associated with the largest relative wage premium for German low-wage and American middle-wage workers. In addition, the USA system leads to greater dispersion among licensed workers and to higher wage inequality overall. In contrast, the German system compresses wages for licensed workers, thereby reducing overall wage inequality.

Does the Choice between Wage Inequality and Unemployment Affect Productivity Growth?

2006 ◽  
Vol 7 (1) ◽  
pp. 87-112 ◽  
Author(s):  
Lutz G. Arnold
Keyword(s):  
Human Capital ◽  
Wage Inequality ◽  
Productivity Growth ◽  
Capital Accumulation ◽  
Overlapping Generations ◽  
Wage Distribution ◽  
Relative Wage ◽  
Wage Rigidity ◽  
Skilled Workers ◽  
Ceteris Paribus

Abstract We present a non-scale continuous-time overlapping-generations growth model that provides an explanation for why economies with relative wage rigidity feature higher unemployment, but not slower productivity growth, than economies with flexible wages. The compression of the wage distribution associated with relative wage rigidity slows down human capital accumulation and growth ceteris paribus. But unemployment among the low-skilled workers strengthens the incentives to invest in human capital and, hence, growth. The two effects are offsetting, and growth is independent of the prevailing degree of relative wage rigidity. This knife-edge result is robust with respect to some modifications of the model.

scholarly journals Labor Unions and the Distribution of Wages and Employment in South Africa

ILR Review ◽  
1998 ◽  
Vol 51 (4) ◽  
pp. 680-703 ◽  
Author(s):  
T. Paul Schultz ◽  
Germano Mwabu
Keyword(s):  
South Africa ◽  
Wage Inequality ◽  
Wage Gap ◽  
Participation Rate ◽  
Wage Distribution ◽  
Relative Wage ◽  
Wage Effect ◽  
Percentage Points ◽  
African Youth ◽  
White Workers

Few countries have higher wage inequality than South Africa, where wages of African and white workers differ by a factor of five. Using survey data collected in 1993, the authors analyze the complex effect of unions on this wage gap. Among male African workers in the bottom decile of the wage distribution, union membership was associated with wages that were 145% higher than those of comparable nonunion workers, and among those in the top decile the differential was 19%. Regression estimates also indicate that returns to observed productive characteristics of workers, such as education and experience, were larger for nonunion than union workers. If the large union relative wage effect were cut in half, the authors estimate that employment of African youth, age 16–29, would increase by two percentage points, and their labor force participation rate would also increase substantially.

scholarly journals A Schumpeterian Model of Protection and Relative Wages

1999 ◽  
Vol 89 (3) ◽  
pp. 450-472 ◽  
Author(s):  
Elias Dinopoulos ◽  
Paul Segerstrom
Keyword(s):  
Skill Acquisition ◽  
Wage Inequality ◽  
Simulation Analysis ◽  
The United States ◽  
Relative Wage ◽  
Dynamic General Equilibrium Model ◽  
Relative Wages ◽  
Skill Upgrading ◽  
Unskilled Workers ◽  
D Investment

This paper presents a dynamic general equilibrium model of R&D-based trade between two structurally identical countries in which both innovation and skill acquisition rates are endogenously determined. Trade liberalization increases R&D investment and the rate of technological change. It also reduces the relative wage of unskilled workers and results in skill upgrading within each industry when R&D is the skilled-labor intensive activity relative to manufacturing of final products. Time-series evidence from the United States and simulation analysis support the empirical relevance of the model, which offers a North–North trade explanation for increasing wage inequality. (JEL F10, F12, F13, D32, D41)

Econometric Analysis of Returns to Education of Rural and Urban Labour Markets Workers in Tamil Nadu

2020 ◽  
pp. 336-344
Keyword(s):  
Wage Inequality ◽  
Tamil Nadu ◽  
Returns To Education ◽  
Labour Markets ◽  
Wage Distribution ◽  
Rural Market ◽  
Rural And Urban ◽  
Rate Of Returns ◽  
Education Groups ◽  
Quantile Regression Method

The objective of this study was to empirically evaluate the returns to education of rural and urban labour markets workers in Tamil Nadu using the IHDS data with appropriate Econometric models. First, the present study estimated the earning functions of the rural and urban market's workers by OLS technique and standard Mincerian earning functions. Secondly, the quantile regression method was also used to examine the evolution of wage inequality. The findings of the study showed that the effects of education and experience on the log of hourly wages were positive, and these coefficients were statistically significant. The returns to education increased with the level of education and differed among the workers of rural and urban labour markets. The results showed that the rates of returns to primary, middle and higher secondary were higher in the urban market, whereas those of secondary and graduation were higher in the rural market. The study revealed that the effect of education was not the same across the rural and urban wage distribution. The rate of returns differed considerably within education groups across different quantiles of the wage distribution.

The Impact of International Trade on Wage Inequality in Argentina (1998-2006)

2010 ◽  
Author(s):  
Claudio Fernández Macor ◽  
Néstor Perticarari ◽  
Carlos Beltrán
Keyword(s):  
International Trade ◽  
Wage Inequality ◽  
The Impact
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