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Small Firms, Contracting-Out, Computers and Wage Inequality: Evidence from UK Manufacturing

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  • Haskel, Jonathan

Abstract

What demand-side and institutional factors raised the skilled wage premium over the 1980s in U.K. manufacturing? Using a panel of eighty industries over l980-89, the author finds that (1) the average skill premium rose by around 13 percentage points; (2) computer introduction explains around 50 percent of this rise; (3) the growth in small firms and in contracting-out together explain around 20 percent of the rise; and (4) the fall in unionization explains around 15 percent of the rise. Copyright 1999 by The London School of Economics and Political Science

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Bibliographic Info

Article provided by London School of Economics and Political Science in its journal Economica.

Volume (Year): 66 (1999)
Issue (Month): 261 (February)
Pages: 1-21

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Handle: RePEc:bla:econom:v:66:y:1999:i:261:p:1-21

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Cited by:
  1. Liu, Jin-Tan & Tsou, Meng-Wen & Hammitt, James K., 2004. "Computer use and wages: evidence from Taiwan," Economics Letters, Elsevier, vol. 82(1), pages 43-51, January.
  2. K Taylor, 2002. "Assessing the Determinants of Male Earnings Dispersion," Economic Issues Journal Articles, Economic Issues, vol. 7(2), pages 35-58, September.
  3. Wolfgang Franz, 1999. "Real and Monetary Challenges to Wage Policy in Germany at the Turn of the Millennium: Technical Progress, Globalization and European Monetary Union," CESifo Working Paper Series 200, CESifo Group Munich.
  4. Christopher H. Wheeler, 2007. "Industry localisation and earnings inequality: Evidence from U.S. manufacturing," Papers in Regional Science, Wiley Blackwell, vol. 86(1), pages 77-100, 03.
  5. Gavin Cameron, 1999. "Why did UK manufacturing productivity growth slow down in the 1970s and speed up in the 1980s," Economics Series Working Papers 1999-W24, University of Oxford, Department of Economics.
  6. Tomiura, Eiichi, 2005. "Foreign outsourcing and firm-level characteristics: Evidence from Japanese manufacturers," Journal of the Japanese and International Economies, Elsevier, vol. 19(2), pages 255-271, June.
  7. Rimler, Judit, 2005. "Számítógép-használat és kreativitás
    [Computer use and creativity]
    ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(12), pages 991-1009.
  8. Simon C. Parker, 2010. "Contracting Out, Public Policy And Entrepreneurship," Scottish Journal of Political Economy, Scottish Economic Society, vol. 57(2), pages 119-144, 05.
  9. Kjell G. Salvanes & Svein Erik Førre, 2001. "Job Creation, Heterogeneous Workers and Technical Change: Matched Worker/Plant Data Evidence from Norway," Discussion Papers 304, Research Department of Statistics Norway.
  10. Haskel, Jonathan E. & Slaughter, Matthew J., 2002. "Does the sector bias of skill-biased technical change explain changing skill premia?," European Economic Review, Elsevier, vol. 46(10), pages 1757-1783, December.
  11. Ide Kearney, 1997. "Shifts in the Demand for Skilled Labour in the Irish Manufacturing Sector: 1979-1990," Papers WP083, Economic and Social Research Institute (ESRI).
  12. Hübler, Olaf & Meyer, Wolfgang, 2000. "Industrial Relations and the Wage Differentials between Skilled and Unskilled Blue-Collar Workers within Establishments: An Empirical Analysis with Data of Manufacturing Firms," IZA Discussion Papers 176, Institute for the Study of Labor (IZA).
  13. Indjikian, Rouben & Siegel, Donald S., 2005. "The Impact of Investment in IT on Economic Performance: Implications for Developing Countries," World Development, Elsevier, vol. 33(5), pages 681-700, May.
  14. Matthias Lücke, 1999. "Sectoral Value Added Prices, TFP Growth, and the Low-Skilled Wage in High-Income Countries," Kiel Working Papers 923, Kiel Institute for the World Economy.
  15. Rimler, Judit, 2003. "Ecset vagy egér. Mesterségbeli tudás és magas szintű technika
    [Brush or mouse. Occupational capabilities and high technology]
    ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(12), pages 1095-1114.
  16. Paolo Manasse & Luca Stanca, 2002. "Working on the Train: Technology, Trade and Wages in Italian Manufacturing," Working Papers 61, University of Milano-Bicocca, Department of Economics, revised Nov 2002.

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