Coping with Technological Progress: the Role of Ability in Making Inequality so Persistent
AbstractThis study explains the evolution of wage inequality over the last 30 years and supports this explanation with evidence. At each level of schooling, a faster rate of technological progress weakens the link between schooling and work and increases the unknown needed to cope with during one's working life. Coping with the unknown demands ability. By accentuating the role of ability, technological progress increases wage inequality within each group of education as well as between education groups. Inasmuch as education is an irreversible investment, the rise in within group inequality BOOSTS UP the rise of between group inequality. Guided by this theory we turn to the PSID for evidence.
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Bibliographic InfoPaper provided by Tel Aviv in its series Papers with number 27-98.
Length: 45 pages
Date of creation: 1998
Date of revision:
Contact details of provider:
Postal: Israel TEL-AVIV UNIVERSITY, THE FOERDER INSTITUTE FOR ECONOMIC RESEARCH, RAMAT AVIV 69 978 TEL AVIV ISRAEL.
Web page: http://econ.tau.ac.il/research/foerder.asp
More information through EDIRC
TECHNOLOGY ; INEQUALITY ; WAGES ; ECONOMIC GROWTH ; EDUCATION;
Other versions of this item:
- Rubinstein, Yona & Tsiddon, Daniel, 1999. "Coping with Technological Progress: The Role of Ability in Making Inequality so Persistent," CEPR Discussion Papers 2153, C.E.P.R. Discussion Papers.
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
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