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Rising skills premia: you ain't seen nothing yet

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  • R. Nahuis
  • H.L.F. de Groot

Abstract

Increases in inequality between low and high-skilled workers are likely to affect welfare state policies in upcoming decades. Demand for redistribution puts pressure on marginal income-tax rates and other social security measures. We come to this conclusion by confronting expected supply and demand for skill. If demand for skill continues to increase at the pace of the last decades, supply has to keep up its high rate of growth of the last decades too. A priori, the former is plausible, the latter is not. This paper makes this point and sketches the major uncertainties surrounding the underlying trends.

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Bibliographic Info

Paper provided by Utrecht School of Economics in its series Working Papers with number 03-02.

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Length: 50 pages
Date of creation: 2003
Date of revision:
Handle: RePEc:use:tkiwps:0302

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Keywords: Inequality; Policy; Social Security; Cross-country comparison;

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References

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Citations

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Cited by:
  1. Richard Nahuis & Henry van der Wiel, 2005. "How Should Europe's ICT Ambitions look like? An Interpretative Review of the Facts," Working Papers 05-22, Utrecht School of Economics.
  2. Matthias Weiss, 2004. "Skill-Biased Technological Change: Is there Hope for the Unskilled?," MEA discussion paper series 04045, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
  3. Stefan Groot, 2011. "Wages in the Netherlands: a Micro Approach," ERSA conference papers ersa10p1526, European Regional Science Association.
  4. Wim Suyker & Henri de Groot & P. Buitelaar, 2007. "India and the Dutch economy; stylised facts and prospects," CPB Document 155, CPB Netherlands Bureau for Economic Policy Analysis.
  5. Henri de Groot & Richard Nahuis & Paul Tang, 2004. "Is the American model Miss World? Choosing between the Anglo-Saxon model and a European-style alternative," CPB Discussion Paper 40, CPB Netherlands Bureau for Economic Policy Analysis.
  6. Wim Suyker & Henri de Groot, 2006. "China and the Dutch economy," CPB Document 127, CPB Netherlands Bureau for Economic Policy Analysis.
  7. Stefan Groot & Henri de Groot, 2011. "Wage inequality in the Netherlands: Evidence, trends and explanations," CPB Discussion Paper 186, CPB Netherlands Bureau for Economic Policy Analysis.

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