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Technological Progress and Income Inequality

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  • Karni, Edi
  • Zilcha, Itzhak

Abstract

This paper examines the effects of Hicks-neutral, Harrod-neutral, and Solow-neutral technological improvements on the distribution of income in an overlapping generations economy with endogenous labor supply and a bequest motive. Income inequality in this model is generated by a stochastic process representing random variations in intergenerational transfers and pure luck. The comparative dynamics analysis trace the effects of the aforementioned technological changes in each and every period after they occur. These effects depend on the nature of the technological change and on the elasticity of substitution.

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Bibliographic Info

Article provided by Springer in its journal Economic Theory.

Volume (Year): 5 (1995)
Issue (Month): 2 (March)
Pages: 277-94

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Handle: RePEc:spr:joecth:v:5:y:1995:i:2:p:277-94

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Cited by:
  1. Joao Ricardo Faria & Miguel A. Leon-Ledesma, 2002. "Habit Formation, Work Ethics, and Technological Progress," Studies in Economics 0210, Department of Economics, University of Kent.
  2. Kaganovich, Michael & Zilcha, Itzhak, 2012. "Pay-as-you-go or funded social security? A general equilibrium comparison," Journal of Economic Dynamics and Control, Elsevier, vol. 36(4), pages 455-467.
  3. Yoshinori Kurokawa, 2009. "Variety-Skill Complementarity: A Simple Resolution of the Trade-Wage Inequality Anomaly," Tsukuba Economics Working Papers 2009-007, Economics, Graduate School of Humanities and Social Sciences, University of Tsukuba.
  4. Ronald Fischer, 1999. "Income distribution and Trade Liberalization," Documentos de Trabajo 67, Centro de Economía Aplicada, Universidad de Chile.
  5. Zilcha, Itzhak, 2003. "Intergenerational transfers, production and income distribution," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 489-513, March.

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