Intermediate Products, Specialization and the Dynamics of Wage Inequality in the US
AbstractThis 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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Bibliographic InfoPaper provided by USI Università della Svizzera italiana in its series Quaderni della facoltà di Scienze economiche dell'Università di Lugano with number 0608.
Length: 24 pages
Date of creation: Dec 2006
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Web page: https://www.bul.sbu.usi.ch
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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-01-14 (All new papers)
- NEP-INT-2007-01-14 (International Trade)
- NEP-LAB-2007-01-14 (Labour Economics)
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