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Technical progress and real wage stagnation: theory and evidence from the U.S. steel industry

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  • Donald Alexander
  • Jon Neill

Abstract

Over the past twenty years real wages have stagnated despite substantial technical progress. This runs contrary to the widespread belief that technological change increases real wages. This paper presents a theoretical model showing that technical progress could reduce wages. This hypothesis is then tested using data from the U.S. steel industry.

Suggested Citation

  • Donald Alexander & Jon Neill, 2004. "Technical progress and real wage stagnation: theory and evidence from the U.S. steel industry," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 13(1), pages 61-75.
    • Handle: RePEc:taf:ecinnt:v:13:y:2004:i:1:p:61-75
    DOI: 10.1080/1043859042000156039
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    References listed on IDEAS

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