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Technological Complexity, Wage Differentials and Unemployment

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  • Dalmazzo, Alberto

Abstract

A model is developed to analyse the relation between wages and technological complexity, as characterised by the Oring theory of production. In equilibrium, the adoption of a relatively complex technology induces the employer to pay higher wages. We argue that the model can explain increased within-group wage inequality as a consequence of increased technological heterogeneity among firms. Copyright 2002 by The editors of the Scandinavian Journal of Economics.

Suggested Citation

  • Dalmazzo, Alberto, 2002. " Technological Complexity, Wage Differentials and Unemployment," Scandinavian Journal of Economics, Wiley Blackwell, vol. 104(4), pages 515-530, December.
  • Handle: RePEc:bla:scandj:v:104:y:2002:i:4:p:515-30
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    Cited by:

    1. Eric A. Verhoogen, 2008. "Trade, Quality Upgrading, and Wage Inequality in the Mexican Manufacturing Sector," The Quarterly Journal of Economics, Oxford University Press, vol. 123(2), pages 489-530.
    2. von Siemens, Ferdinand A. & Kosfeld, Michael, 2014. "Team production in competitive labor markets with adverse selection," European Economic Review, Elsevier, vol. 68(C), pages 181-198.
    3. Li Yu & Peter F. Orazem, 2014. "O-Ring production on U.S. hog farms: joint choices of farm size, technology, and compensation," Agricultural Economics, International Association of Agricultural Economists, vol. 45(4), pages 431-442, July.
    4. Mañé Vernet, Ferran & Miravet, Daniel, 2010. "An investigation on the pay-off to generic competences for core employees in Catalan manufacturing firms," Working Papers 2072/179595, Universitat Rovira i Virgili, Department of Economics.
    5. von Siemens, Ferdinand & Kosfeld, Michael, 2009. "Negative Externalities and Equilibrium Existence in Competitive Markets with Adverse Selection," IZA Discussion Papers 4125, Institute for the Study of Labor (IZA).

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