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Wage inequality, technology and trade: 21st Century evidence
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This article argued that a good fraction of thisinequality growth is due to technology-related increases in the demand for skilled workers outstripping the growth of their supply, and that trade does matter for changes in the labour market through inducing faster technical change rather than just through the conventional Heckscher-Ohlinmechanism.Abstract:
This paper describes and explains some of the principal trends in the wage and skilldistribution in recent decades. There have been sharp increases in wage inequality across theOECD, beginning with the US and UK at the end of the 1970s. A good fraction of thisinequality growth is due to technology-related increases in the demand for skilled workersoutstripping the growth of their supply. Since the early 1990s, labour markets have becomemore polarized with jobs in the middle third of the wage distribution shrinking and those inthe bottom and top third rising. I argue that this is because computerization complements themost skilled tasks, but substitutes for routine tasks performed by middle wage occupationssuch as clerks, leaving the demand for the lowest skilled service tasks largely unaffected.Finally, I argue that technology is partly endogenous, for example it has been spurred bytrade with China. Thus, trade does matter for changes in the labour market through inducingfaster technical change rather than just through the conventional Heckscher-Ohlinmechanism.read more
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References
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Posted Content
The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity
TL;DR: In this paper, a dynamic industry model with heterogeneous firms is proposed to explain why international trade induces reallocations of resources among firms in an industry and contributes to a welfare gain.
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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.
Book
The race between education and technology
TL;DR: The authors The Race between education and technology: America Once Led and Can Win the Race for Tomorrow The Race Between Education and Technology: America's Graduation from High School and Mass Higher Education in the Twentieth Century Part III.
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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.
Journal ArticleDOI
Trends in U.S. Wage Inequality: Revising the Revisionists
TL;DR: This paper found that the slowing of the growth of overall wage inequality in the 1990s hides a divergence in the paths of upper-tail (90/50) inequality and lower-tail inequality, even adjusting for changes in labor force composition.