A model is developed to analyse the relation between wages and technological complexity, as characterised by the Oring theory of production. In equilibrium, the adoption of a relatively complex technology induces the employer to pay higher wages. We argue that the model can explain increased within-group wage inequality as a consequence of increased technological heterogeneity among firms. Copyright 2002 by The editors of the Scandinavian Journal of Economics.
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Volume (Year): 104 (2002) Issue (Month): 4 (December) Pages: 515-30 Download reference. The following formats are available: HTML
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