Capital deepening and wage differentials: Germany versus US
Abstract"In flexible labour markets, capital increases the productivity of skilled workers more than that of unskilled workers, and in the US faster investment is associated with wider wage inequality. But labour market institutions that keep unskilled workers' wages high also imply that firms may find it profitable to invest so as to boost those workers' productivity. Our empirical analysis based on industry-level data confirms that a higher capital intensity in Germany is associated with smaller wage differentials and with a larger share of unskilled workers in the labour costs. Changes in capital-labour ratios during the 1980s reduced wage differentials by 5-8% in German industries, while in the US capital deepening in such industries as machinery and retail was accompanied by an increase of wage differentials larger than 7%." Copyright (c) CEPR, CES, MSH, 2007.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by CEPR & CES & MSH in its journal Economic Policy.
Volume (Year): 22 (2007)
Issue (Month): (01)
Contact details of provider:
Postal: 3rd Floor, 77 Bastwick Street, London EC1V 3PZ
Phone: +44 (0)20 7183 8801
Fax: +44 (0)20 7183 8820
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0266-4658
More information through EDIRC
Postal: Schackstr. 4, 80539 Munich
Phone: +49 (89) 2180-2748
Fax: +49 (89) 39 73 03
Web page: http://www.cesifo-group.de/portal/page/portal/ifoHome/f-about/f2aboutces
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Lorenzo Cappellari & Carlo Dell'Aringa & Marco Leonardi, 2011.
"Temporary Employment, Job Flows and Productivity: A Tale of two Reforms,"
CESifo Working Paper Series
3520, CESifo Group Munich.
- Lorenzo Cappellari & Carlo Dell’Aringa & Marco Leonardi, 2012. "Temporary Employment, Job Flows and Productivity: A Tale of Two Reforms," Economic Journal, Royal Economic Society, vol. 122(562), pages F188-F215, 08.
- Cappellari, Lorenzo & Dell'Aringa, Carlo & Leonardi, Marco, 2012. "Temporary Employment, Job Flows and Productivity: A Tale of Two Reforms," IZA Discussion Papers 6526, Institute for the Study of Labor (IZA).
- Cingano, Federico & Leonardi, Marco & Messina, Julián & Pica, Giovanni, 2009.
"The Effect of Employment Protection Legislation and Financial Market Imperfections on Investment: Evidence from a Firm-Level Panel of EU Countries,"
IZA Discussion Papers
4158, Institute for the Study of Labor (IZA).
- Federico Cingano & Marco Leonardi & Julián Messina & Giovanni Pica, 2010. "The effects of employment protection legislation and financial market imperfections on investment: evidence from a firm-level panel of EU countries," Economic Policy, CEPR & CES & MSH, vol. 25, pages 117-163, 01.
- Federico Cingano & Marco Leonardi & Julián Messina & Giovanni Pica, 2009. "The effect of employment protection legislation and financial market imperfections on investment: Evidence from a firm-level panel of EU countries," Banco de Espaï¿½a Working Papers 0914, Banco de Espa�a.
- Federico Cingano & Marco Leonardi & Julian Messina & Giovanni Pica, 2009. "The Effect of Employment Protection Legislation and Financial Market Imperfections on Investment: Evidence from a Firm-Level Panel of EU countries," CSEF Working Papers 227, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
- Ryosuke Okazawa, 2013. "Skill-biased technical change, educational choice, and labor market polarization: the U.S. versus Europe," Journal of Economic Inequality, Springer, vol. 11(3), pages 321-342, September.
- Zsofia Barany, 2011.
"The minimum wage and inequality - the effects of education and technology,"
Sciences Po publications
info:hdl:2441/eu4vqp9ompq, Sciences Po.
- Zsófia L. Bárány, 2011. "The Minimum Wage and Inequality - The Effects of Education and Technology," CEP Discussion Papers dp1076, Centre for Economic Performance, LSE.
- Lorenzo Cappellari & Carlo Dell'Aringa & Marco Leonardi, 2010. "Flexible Employment, Job Flows and Labour Productivity," DISCE - Quaderni dell'Istituto di Economia dell'Impresa e del Lavoro ieil0060, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.