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Explaining the growing inequality in wages across skill levels

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  • David A. Brauer
  • Susan Hickok

Abstract

This article investigates two prominent explanations--technology and trade--for growing wage inequality by educational attainment. The analysis indicates a prominent role for technological improvements and a modest but still significant role for increased competition from imports.

Suggested Citation

  • David A. Brauer & Susan Hickok, 1995. "Explaining the growing inequality in wages across skill levels," Economic Policy Review, Federal Reserve Bank of New York, issue Jan, pages 61-75.
    • Handle: RePEc:fip:fednep:y:1995:i:jan:p:61-75:n:v.1.no.1
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    References listed on IDEAS

    as
    1. DiNardo, John & Fortin, Nicole M & Lemieux, Thomas, 1996. "Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach," Econometrica, Econometric Society, vol. 64(5), pages 1001-1044, September.
    2. Lawrence F. Katz & Kevin M. Murphy, 1992. "Changes in Relative Wages, 1963–1987: Supply and Demand Factors," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(1), pages 35-78.
    3. Stephen Nickell & D Nicolitsas, 1994. "Wages," CEP Discussion Papers dp0219, Centre for Economic Performance, LSE.
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    Cited by:

    1. George E. Johnson, 1997. "Changes in Earnings Inequality: The Role of Demand Shifts," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 41-54, Spring.
    2. Agenor, Pierre-Richard & Aizenman, Joshua, 1997. "Technological change, relative wages, and unemployment," European Economic Review, Elsevier, vol. 41(2), pages 187-205, February.
    3. Schluter, Gerald E. & Lee, Chinkook, 2004. "Is There a Link between the Changing Skills of Labor Used in U.S. Processed Food Trade and Rural Employment?," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(3), pages 1-13, December.
    4. Pierre-Richard Agenor & Joshua Aizenman, 1996. "Wage Dispersion and Technical Progress," NBER Working Papers 5417, National Bureau of Economic Research, Inc.
    5. Christoph Scherrer, 1996. "The economic and political arguments for and against social clauses," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 31(1), pages 9-20, January.
    6. Gerry Boyle; & Pauline McCormack, 1998. "Trade and Technological Explanations for Changes in Sectoral Labour Demand in OECD Economies," Economics Department Working Paper Series n770598, Department of Economics, National University of Ireland - Maynooth.

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