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

Author

Listed:
  • Anton Tchipev

    (Istituto di Ricerche Economiche (IRE), Facoltà di Scienze Economiche, Università della Svizzera Italiana)

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.

Suggested Citation

  • Anton Tchipev, 2006. "Intermediate Products, Specialization and the Dynamics of Wage Inequality in the US," Quaderni della facoltà di Scienze economiche dell'Università di Lugano 0608, USI Università della Svizzera italiana.
    • Handle: RePEc:lug:wpaper:0608
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    More about this item

    Keywords

    wage inequality; intermediate products; outsourcing;
    All these keywords.

    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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