General purpose technology and wage inequality
TLDR
The authors formalizes the idea of generality of technology in two ways, one related to human capital (skill transferability) and one to physical capital (vintage compatibility) and studies the impact of an increase in these two dimensions of technological generality on equilibrium wage inequality.Abstract:
The recent changes in the US wage structure are often linked to the new wave of capital-embodied information technologies. The existing literature has emphasized either the accelerated pace or the skill-bias of embodied technical progress as the driving force behind the rise in wage inequality. A key, neglected, aspect is the “general purpose” nature of the new information technologies. This paper formalizes the idea of generality of technology in two ways, one related to human capital (skill transferability) and one to physical capital (vintage compatibility) and studies the impact of an increase in these two dimensions of technological generality on equilibrium wage inequality.read more
Citations
More filters
Book
The Economics of Growth
Philippe Aghion,Peter Howitt +1 more
TL;DR: The economics of growth as mentioned in this paper is a comprehensive, rigorous, and up-to-date introduction to growth economics that presents all the major growth paradigms and shows how they can be used to analyze the growth process and growth policy design.
Book ChapterDOI
general purpose technologies
TL;DR: This article used the term general-purpose technology (GPT) to describe fundamental advances that drive these flurries, which in turn transform both household life and the ways in which firms conduct business.
Journal ArticleDOI
Firm heterogeneity and the labor market effects of trade liberalization
TL;DR: This paper developed a model that incorporates workers' fair wage preferences into a general equilibrium framework with heterogeneous firms, where the wage considered to be fair by workers depends on the productivity of the firm they are working in.
Journal ArticleDOI
Cheap Children and the Persistence of Poverty
Omer Moav,Omer Moav +1 more
TL;DR: In this article, the authors developed a theory of fertility and child educational choice that offers an explanation for the persistence of poverty within and across countries, under the key assumption that individuals' productivity as teachers increases with their own human capital.
Journal ArticleDOI
What Do We Learn from Schumpeterian Growth Theory
Philippe Aghion,Philippe Aghion,Philippe Aghion,Ufuk Akcigit,Ufuk Akcigit,Ufuk Akcigit,Peter Howitt,Peter Howitt +7 more
TL;DR: In this article, the role of competition and market structure, firm dynamics, the relationship between growth and development with the notion of appropriate growth institutions, and the emergence and impact of long-term technological waves.
References
More filters
Journal ArticleDOI
Changes in Relative Wages, 1963–1987: Supply and Demand Factors
Lawrence F. Katz,Kevin M. Murphy +1 more
TL;DR: A simple supply and demand framework is used to analyze changes in the U.S. wage structure from 1963 to 1987 as discussed by the authors, showing that rapid secular growth in the demand for more-educated workers, "more-skilled" workers, and females appears to be the driving force behind observed changes in wage structure.
Book ChapterDOI
Investment in humans, technological diffusion and economic growth
TL;DR: Most economic theorists have embraced the principle that education enhances one's ability to receive, decode, and understand information, and that information processing and interpretation is important for performing or learning to perform many jobs as discussed by the authors.
Journal ArticleDOI
Labor Market Institutions and the Distribution of Wages, 1973-1992: a Semiparametric Approach.
TL;DR: In this paper, a semiparametric procedure is presented to analyze the effects of institutional and labor market factors on recent changes in the U.S. distribution of wages, including de-unionization and supply and demand shocks.
Journal ArticleDOI
Wage Inequality and the Rise in Returns to Skill
TL;DR: This paper found that the trend toward increased wage inequality is apparent within narrowly defined education and labor market experience groups, and that much of the increase in wage inequality for males over the last 20 years is due to increased returns to the components of skill other than years of schooling and years of labor market experiences.
Posted Content
Technical Change, Inequality, and the Labor Market
TL;DR: The authors argue that the behavior of wages and returns to schooling indicates that technical change has been skill-biased during the past sixty years and that the recent increase in inequality is most likely due to an acceleration in skill bias.
Related Papers (5)
Why Do New Technologies Complement Skills? Directed Technical Change and Wage Inequality
Changes in Relative Wages, 1963–1987: Supply and Demand Factors
Lawrence F. Katz,Kevin M. Murphy +1 more