Why will the Kuznets Curve always reverse ?
AbstractIn this paper, we develop a model of innovation-based growth to address the issue of skill-biased technical change over the long run. We show that innovations fluctuate endogenously from skilled to unskilled sectors, thereby generating periods of increasing and decreasing wage inequality. This could contribute to explain that technological progress exerts a non monotonic pressure on wage inequality over the long run.
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Date of creation: 2001
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cycles; innovatio; driven growth; Kuznets curve; wage inequality;
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