Superstars and renaissance men: specialization, market size and the income distribution

Walker, Richard (2005) Superstars and renaissance men: specialization, market size and the income distribution. CEPDP, 707. Centre for Economic Performance, London School of Economics and Political Science, London, UK. ISBN 0753019043

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Abstract

A general equilibrium model of individual specialization is presented in which agents trade off the productivity and price implications of producing a narrower range of goods. Agents with highly specific skills turn out to benefit most from large markets. The model is able to replicate features of the long-term evolution of the US income distribution, with specialization-biased technical change and the increase in employed population playing key roles. Among the results is that, at least along one dimension of ability, the skill premium is increasing in the relative supply of skills.

Item Type:	Monograph (Discussion Paper)
Official URL:	http://cep.lse.ac.uk
Additional Information:	© 2005 Richard Walker
Uncontrolled Keywords:	specialization, aggregate demand, inequality, market size
Library of Congress subject classification:	H Social Sciences > HF Commerce H Social Sciences > HD Industries. Land use. Labor
Journal of Economic Literature Classification System:	O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O11 - Macroeconomic Analyses of Economic Development E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Employment, and Investment > E25 - Aggregate Factor Income Distribution E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Employment, and Investment > E23 - Production
Sets:	Collections > Economists Online Research centres and groups > Centre for Economic Performance (CEP)
Rights:	http://www.lse.ac.uk/library/rights/LSERO.htm
Identification Number:	707
URL:	http://eprints.lse.ac.uk/19880/

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