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Egalitarian and elitist education systems as the basis for international differences in wage inequality

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  • Walde, Klaus

Abstract

This paper investigates one reason why some countries have experienced a strong increase in wage inequality over the last decades while others have not. The explanation is based on the link between the quality of education and induced technological change. A country with qualitatively better-educated skilled workers, relative to unskilled workers, has a higher ratio of human capital to labour than a country where the quality of education is more equal across education levels. These differences lead to different paths of induced technological change across countries, which in turn imply different histories of the distribution of labour income.

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Bibliographic Info

Article provided by Elsevier in its journal European Journal of Political Economy.

Volume (Year): 16 (2000)
Issue (Month): 3 (September)
Pages: 445-468

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Handle: RePEc:eee:poleco:v:16:y:2000:i:3:p:445-468

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Web page: http://www.elsevier.com/locate/inca/505544

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  1. 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.
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  17. David Card & Alan Krueger, 1990. "Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States," NBER Working Papers 3358, National Bureau of Economic Research, Inc.
  18. Katharine G. Abraham & Susan N. Houseman, 1993. "Earnings Inequality in Germany," NBER Working Papers 4541, National Bureau of Economic Research, Inc.
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Cited by:
  1. Bowman, Kevin James, 2007. "Knowledge stocks by distance to frontier: Linking low education inequality to high growth in developing countries," Journal of Asian Economics, Elsevier, vol. 18(4), pages 613-635, August.
  2. Di Gioacchino, Debora & Sabani, Laura, 2009. "Education policy and inequality: A political economy approach," European Journal of Political Economy, Elsevier, vol. 25(4), pages 463-478, December.
  3. Klaus Waelde & Pia Weiss, 2004. "International Competition, Slim Firms and Wage Inequality," CESifo Working Paper Series 1254, CESifo Group Munich.
  4. Thushyanthan Baskaran & Zohal Hessami, 2010. "Globalization and the Composition of Public Education Expenditures: A Dynamic Panel Analysis," Working Paper Series of the Department of Economics, University of Konstanz 2010-03, Department of Economics, University of Konstanz.
  5. Thushyanthan Baskaran & Zohal Hessami, 2012. "Public education spending in a globalized world:," International Tax and Public Finance, Springer, vol. 19(5), pages 677-707, October.
  6. Glomm, Gerhard & Ravikumar, B., 2003. "Public education and income inequality," European Journal of Political Economy, Elsevier, vol. 19(2), pages 289-300, June.
  7. Thushyanthan Baskaran & Zohal Hessami, 2011. "Public Education Spending in a Globalized World: Is there a Shift in Priorities Across Educational Stages?," Working Paper Series of the Department of Economics, University of Konstanz 2011-42, Department of Economics, University of Konstanz.

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