Machin, Stephen and Van Reenen, John
Changes in wage inequality.
In: Durlauf, Steven N. and Blume, Lawrence E., (eds.)
The new Palgrave dictionary of economics.
Palgrave Macmillan, Basingstoke, UK, pp. 658-666.
Full text not available from this repository.
We examine trends in wage inequality in the United States and other countries since the 1960s. We show that there has been a secular increase in the 90–50 wage differential in the United States and the United Kingdom since the late 1970s. By contrast the 50–10 wage differential rose mainly in the 1980s and flattened or fell in the 1990s and 2000s. We conclude that a version of the skill-biased technical change hypothesis combined with institutional changes (the decline in the minimum wage and trade unions) continues to offer the best explanation for the observed patterns of change.
||© 2008 Palgrave Macmillan
||decentralization; elasticity of substitution; Heckscher–Ohlin trade theory; imperfect competition; international trade; labour market institutions; minimum wages, skill-biased technical change, Stolper–Samuelson theorem, technical change, trade unions, unemployment, wage differentials, wage inequality
|Library of Congress subject classification:
||H Social Sciences > HC Economic History and Conditions
|Journal of Economic Literature Classification System:
||J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc.
N - Economic History > N3 - Labor and Consumers, Demography, Education, Health, Income, and Wealth > N30 - Economic History: Labor and Consumers, Demography, Education, Health, Income and Wealth: General, International, or Comparative (Migration)
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