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General Purpose Technology and Wage Inequality

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Author Info
Aghion, Philippe
Howitt, Peter
Violante, Giovanni L

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Abstract

The recent changes in the U.S. wage structure are often linked to the new wave of capital-embodied information technologies. The existing literature has emphasized either the accelerated pace or the skill-bias of embodied technical progress as the driving force behind the rise in wage inequality. A key, neglected, aspect is the "general purpose" nature of the new information technologies. This paper formalizes the idea of generality of technology in two ways, one related to human capital (skill transferability) and one to physical capital (vintage compatibility) and studies the impact of an increase in these two dimensions of technological generality on equilibrium wage inequality. Copyright 2002 by Kluwer Academic Publishers

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Publisher Info
Article provided by Springer in its journal Journal of Economic Growth.

Volume (Year): 7 (2002)
Issue (Month): 4 (December)
Pages: 315-45
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Handle: RePEc:kap:jecgro:v:7:y:2002:i:4:p:315-45

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  4. Egger, Hartmut & Grossmann, Volker, 2004. "Noncognitive Abilities and Within-Group Wage Inequality," IZA Discussion Papers 1024, Institute for the Study of Labor (IZA). [Downloadable!]
  5. Fatih Guvenen & Burhanettin Kuruscu, 2006. "Ben-Porath meets skill-biased technical change: a theoretical analysis of rising inequality," Discussion Paper / Institute for Empirical Macroeconomics 144, Federal Reserve Bank of Minneapolis. [Downloadable!]
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  8. Ashley Lester, 2005. "Inequality And The Dual Economy: Technology Adoption With Specific And General Skills," CAMA Working Papers 2006-01, Australian National University, Centre for Applied Macroeconomic Analysis. [Downloadable!]
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  11. CASTRO, Rui & COEN-PIRANI, Daniele, 2005. "Why Have Aggregate Skilled Hours Become So Cyclical Since the Mid-1980's?," Cahiers de recherche 2005-19, Universite de Montreal, Departement de sciences economiques. [Downloadable!]
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  12. Borghans,Lex & Weel,Bas,ter, 2002. "The Diffusion of Computers and the Distribution of Wages," Research Memoranda 039, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology. [Downloadable!]
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  13. R. Antonietti, 2006. "The skill content of technological change. Some conjectures on the role of education and job-training in reducing the timing of new technology adoption," Working Papers 556, Dipartimento Scienze Economiche, Università di Bologna. [Downloadable!]
  14. Guido Cozzi & Giammario Impullitti, . "Technology Policy and Wage Inequality," Working Papers 2008_23, Department of Economics, University of Glasgow, revised Oct 2006. [Downloadable!]
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