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Risk, Occupational Choice, and Inequality

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  • Sandén, Klas

    () (Department of Economics, School of Business, Economics and Law, Göteborg University)

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    Abstract

    This essay presents a new theory explaining increased wage inequality. A standard endogenous growth model is augmented with occupational choice of highskill workers. Depending on the occupational choice, high-skill workers earn either a certain or uncertain income. Wage inequality, measured by the average wage of high-skill workers divided by the average wage of low-skill workers, can increase or decrease due to an increased supply of high-skill workers.

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    File URL: http://hdl.handle.net/2077/4754
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    Bibliographic Info

    Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 263.

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    Length: 44 pages
    Date of creation: 10 Sep 2007
    Date of revision:
    Handle: RePEc:hhs:gunwpe:0263

    Contact details of provider:
    Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
    Phone: 031-773 10 00
    Web page: http://www.handels.gu.se/econ/
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    Related research

    Keywords: Distribution; Wages; Cooperatives; Technological Change; Economic Growth;

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