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Capital-Skill Complementarity and Inequality in Sweden Author info | Abstract | Publisher info | Download info | Related research | Statistics Lindquist, Matthew J. () (Swedish Institute for Social Research, Stockholm University)
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Income inequality increased in Sweden during the 1980’s and 90’s as did the returns to higher education. The main conclusion of this study is that increased income inequality between high and low skilled workers is demand driven and is due to the presence of capital-skill complementarity in production. Increased investments in new, more efficient capital equipment, together with a slowdown in the growth rate of skilled labor, have raised the ratio of effective capital inputs per skilled worker, which, in turn, has increased the relative demand (and market return) for skilled labor through the capital-skill complementarity mechanism.
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Paper provided by Swedish Institute for Social Research in its series Working Paper Series with number
2/2005.
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Length: 30 pages
Date of creation: 08 Feb 2005Date of revision:
Handle: RePEc:hhs:sofiwp:2005_002Contact details of provider: Postal: SOFI, Stockholm University, SE-10691 Stockholm, Sweden Phone: (0)8 - 16 32 48 Fax: (0)8 - 15 46 70 Web page: http://www.sofi.su.se/ More information through EDIRC
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Keywords: capital-skill complementarity inequality relative wages skill premium university wage premium Other versions of this item:
Find related papers by JEL classification: J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
This paper has been announced in the following NEP Reports :
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Lindquist, Matthew J., 2002.
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
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