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Intermediate Products, Specialization and the Dynamics of Wage Inequality in the US

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Author Info
Anton Tchipev () (Istituto di Ricerche Economiche (IRE), Facoltà di Scienze Economiche, Università della Svizzera Italiana)

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Abstract

This paper attempts to reconcile the slowdown in wage inequality in the 1990s with the view that international trade was a major factor contributing to the sharp increases in inequality during the 1980s. I present a model that highlights the importance of intermediate products and attributes the trend reversal of inequality to the restructuring of the economy. The model is supported by evidence on the evolution of the imports of intermediate products.

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File URL: http://doc.rero.ch/lm.php?url=1000,42,6,20061219124303-UT/wp0608.pdf
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Publisher Info
Paper provided by Biblioteca universitaria di Lugano (University Library of Lugano) in its series Quaderni della facoltà di Scienze economiche dell'Università di Lugano with number 0608.

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Length: 24 pages
Date of creation: Dec 2006
Date of revision:
Handle: RePEc:lug:wpaper:0608

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Web page: http://www.library.lu.usi.ch

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Related research
Keywords: wage inequality; intermediate products; outsourcing;

Find related papers by JEL classification:
F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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This page was last updated on 2009-11-16.

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