Wage Inequality and the New Economy in the US: Does IT-Led Growth Generate Wage Inequality?
AbstractThis paper examines whether the late 1990s IT-related growth has led to a corresponding growth in wage inequality. This is of interest because observers, including Alan Greenspan, have suggested that the "new economy" boom caused growing wage inequality and even job insecurity. The late 1990s also provide insights regarding the claim that technological change generated the wage inequalities of the 1980s. We conclude that overall wage inequality, skill differentials, and within-group wage inequality did not grow in the IT-led new economy boom. So, inequality is not the "price" of technology-led growth. There are numerous reasons to be sceptical about a technology explanation of wage inequality. There is no evidence that technology affects the inequality among workers of similar experience and education, a dimension that accounts for 55 percent of the growth of inequality. Nor is there evidence that technology has had a larger impact in the 1990s or 1980s than in earlier periods.
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 University of Toronto Press in its journal Canadian Public Policy.
Volume (Year): 29 (2003)
Issue (Month): s1 (January)
Contact details of provider:
Postal: University of Toronto Press Journals Division 5201 Dufferin Street Toronto, Ontario, Canada M3H 5T8
Web page: http://economics.ca/cpp/
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- E Berman & J Bound & Stephen Machin, 1997.
"Implications of Skill-Biased Technological Change: International Evidence,"
CEP Discussion Papers
dp0367, Centre for Economic Performance, LSE.
- Eli Berman & John Bound & Stephen Machin, 1998. "Implications Of Skill-Biased Technological Change: International Evidence," The Quarterly Journal of Economics, MIT Press, vol. 113(4), pages 1245-1279, November.
- Berman, E. & Bound, J. & Machin, S., 1997. "Implications of Skill-Biased Technological Change: International Evidence," Papers 25, Centre for Economic Performance & Institute of Economics.
- Berman, Eli & Bound, John & Machin, Stephen, 1997. "Implications of Skill-Biased Technological Change: International Evidence," Working Paper Series 486, Research Institute of Industrial Economics.
- Eli Berman & John Bound & Stephen Machin, 1997. "Implications of Skill-Biased Technological Change: International Evidence," NBER Working Papers 6166, National Bureau of Economic Research, Inc.
- Eli Berman & John Bound & Stephen Machin, 1997. "Implications of Skill-Biased Technological Change: International Evidence," Boston University - Institute for Economic Development 78, Boston University, Institute for Economic Development.
- E. Berman & J. Bound & S. Machin, 1997. "Implications of skill-biased technological change: international evidence," LSE Research Online Documents on Economics 20314, London School of Economics and Political Science, LSE Library.
- Stephen Machin & A Ryan & John Van Reenen, 1996.
"Technology and Changes in Skill Structure: Evidence from an International Panel of Industries,"
CEP Discussion Papers
dp0297, Centre for Economic Performance, LSE.
- Machin, Steve & Van Reenen, John, 1996. "Technology and Changes in Skill Structure: Evidence from an International Panel of Industries," CEPR Discussion Papers 1434, C.E.P.R. Discussion Papers.
- Stephen Machin & Annette Ryan & John Van Reenen, 1996. "Technology and changes in skill structure: Evidence from an international panel of industries," IFS Working Papers W96/06, Institute for Fiscal Studies.
- Alan Greenspan, 1996. "Address: job insecurity and technology," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, vol. 40(Jun), pages 173-181.
- David H. Autor & Lawrence F. Katz & Alan B. Krueger, 1997.
"Computing Inequality: Have Computers Changed the Labor Market?,"
NBER Working Papers
5956, National Bureau of Economic Research, Inc.
- David H. Autor & Lawrence F. Katz & Alan B. Krueger, 1998. "Computing Inequality: Have Computers Changed The Labor Market?," The Quarterly Journal of Economics, MIT Press, vol. 113(4), pages 1169-1213, November.
- David Autor & Lawrence Katz & Alan Krueger, 1997. "Computing Inequality: Have Computers Changed the Labor Market?," Working Papers 756, Princeton University, Department of Economics, Industrial Relations Section..
- Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-42, June.
- Eli Berman & John Bound & Zvi Griliches, 1993. "Changes in the Demand for Skilled Labor within U.S. Manufacturing Industries: Evidence from the Annual Survey of Manufacturing," NBER Working Papers 4255, National Bureau of Economic Research, Inc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Prof. Werner Antweiler).
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.