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Risk, Occupational Choice, and Inequality

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Author Info
Sandén, Klas () (Department of Economics, School of Business, Economics and Law, Göteborg University)
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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Publisher Info
Paper provided by Göteborg University, 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, Göteborg University 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;

Find related papers by JEL classification:
D33 - Microeconomics - - Distribution - - - Factor Income Distribution
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J54 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Producer Cooperatives; Labor Managed Firms
O32 - Economic Development, Technological Change, and Growth - - Technological Change - - - Management of Technological Innovation and R&D
O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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This page was last updated on 2009-12-4.

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