scholarly journals Government Spending Composition, Technical Change, and Wage Inequality

2010 ◽  
Vol 8 (6) ◽  
pp. 1325-1358 ◽  
Author(s):  
Guido Cozzi ◽  
Giammario Impullitti
Keyword(s):  
Wage Inequality ◽  
Technical Change ◽  
Government Spending

Industry Concentration and Wage Inequality: a Directed Technical Change Approach

2018 ◽  
Vol 30 (3) ◽  
pp. 457-481 ◽  
Author(s):  
Manuela Magalhães ◽  
Tiago Sequeira ◽  
Óscar Afonso
Keyword(s):  
Wage Inequality ◽  
Technical Change ◽  
Industry Concentration ◽  
Directed Technical Change

scholarly journals Why Has Urban Inequality Increased?

2018 ◽  
Vol 10 (4) ◽  
pp. 1-42 ◽  
Author(s):  
Nathaniel Baum-Snow ◽  
Matthew Freedman ◽  
Ronni Pavan
Keyword(s):  
Production Function ◽  
Wage Inequality ◽  
Strong Evidence ◽  
Technical Change ◽  
Agglomeration Economies ◽  
Unskilled Labor ◽  
Skill Bias ◽  
Urban Inequality

This paper examines mechanisms driving the more rapid increases in wage inequality in larger cities between 1980 and 2007. Production function estimates indicate strong evidence of capital–skill complementarity and increases in the skill bias of agglomeration economies in the context of rapid skill-biased technical change. Immigration shocks are the source of identifying variation across cities in changes to the relative supply of skilled versus unskilled labor. Estimates indicate that changes in the factor biases of agglomeration economies rationalize at least 80 percent of the more rapid increases in wage inequality in larger cities. (JEL J24, J31, O33, R23)

Trade, Skill Biased Technical Change and Wage Inequality in South Africa

2013 ◽  
Vol 21 (3) ◽  
pp. 419-431 ◽  
Author(s):  
Jørn Rattsø ◽  
Hildegunn E. Stokke
Keyword(s):  
South Africa ◽  
Wage Inequality ◽  
Technical Change

scholarly journals Technical Change, Wage Inequality, and Taxes

2015 ◽  
Vol 105 (10) ◽  
pp. 3061-3101 ◽  
Author(s):  
Laurence Ales ◽  
Musab Kurnaz ◽  
Christopher Sleet
Keyword(s):  
Labor Market ◽  
Income Distribution ◽  
Wage Inequality ◽  
Technical Change ◽  
Optimal Policy ◽  
Policy Design ◽  
Income Taxes ◽  
Policy Response ◽  
Assignment Model ◽  
Optimal Tax

This paper considers the normative implications of technical change for tax policy design. A task-to-talent assignment model of the labor market is embedded into an optimal tax problem. Technical change modifies equilibrium wage growth across talents and the substitutability of talents across tasks. The overall optimal policy response is to reduce marginal income taxes on low to middle incomes, while raising those on middle to high incomes. The reform favors those in the middle of the income distribution, reducing their average taxes while lowering transfers to those at the bottom. (JEL D31, H21, H23, H24, J31, O33)

scholarly journals The Assignment of Workers to Tasks, Wage Distribution, and Technical Change: A Critical Review

2008 ◽  
pp. 12
Author(s):  
Arnaud Dupuy
Keyword(s):  
Production Function ◽  
Wage Inequality ◽  
Technical Change ◽  
Critical Review ◽  
Wage Structure ◽  
Wage Distribution ◽  
Wage Distributions ◽  
General Equilibrium Effect ◽  
Assignment Models ◽  
Equilibrium Effect

This article reviews the literature on two-sided atomless assignment models of workers to tasks. Using simple parametric examples, the fundamental differences between the comparative-advantage and the scale-of-operations models are illustrated. Holding the distributions of abilities and tasks and the production function of worker-task pairs constant, the two principles are shown to produce different wage distributions and wage inequality. These models are useful to evaluate the general equilibrium effect of technical change on the wage structure. In all models, Skill Biased Technical Change that impacts the production function of worker-task pairs leads to rising wage inequality.

The role of IPRs on prices, wages and growth in a two country directed technical change model

2017 ◽  
Vol 19 (1) ◽  
Author(s):  
Óscar Afonso
Keyword(s):  
Growth Rate ◽  
Exchange Rate ◽  
Real Exchange Rate ◽  
Wage Inequality ◽  
Technical Change ◽  
Technological Knowledge ◽  
Change Model ◽  
The Real ◽  
Directed Technical Change ◽  
Knowledge Bias

Abstract We develop a two country, Innovator and Follower, directed technical change model between tradable and nontradable sectors. The Innovator performs innovative R&D. The Follower imitates, in a pre-trade context, and adopts, in a trade scenario, the available technological knowledge. We start by considering the pre-trade context and then we analyze the trade scenario. In both regimes – imitation and adoption – and in BGP, international IPRs protection, R&D productivity, scale-effects intensity and substitutability between sectors determine the stable and unique worldwide economic growth rate and the technological-knowledge bias, which, in turn, affects relative prices and wages. Depending on IPRs protection, imitation and adoption can either amplify or slow down the technological-knowledge bias and thus the real exchange rate, the wage inequality and the worldwide growth rate. For example, under technological-knowledge adoption with positive international IPRs protection and substitutability, wages tend to be higher in the Innovator, technological knowledge and intra-country wage inequality are biased towards the tradable sector, and the real exchange rate accommodates the Balassa-Samuelson proposal.

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