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Is inequality an inevitable by-product of skill-biased technical change?

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  • Philipp Hühne
  • Dierk Herzer

Abstract

This article examines trends in relative wages between high- and medium-skilled workers and between medium- and low-skilled workers in Finland, Germany, Italy, South Korea and the US over the period 1970–2005. It is found that there are large differences in the evolution wage inequality across the countries in our sample, with some countries showing a long-run upward trend in relative wages (such as the US, Germany and Italy) and others showing a long-run downward trend (such as Finland and Korea). The main conclusion from our results is that inequality is not an inevitable by-product of technological change.

Suggested Citation

  • Philipp Hühne & Dierk Herzer, 2017. "Is inequality an inevitable by-product of skill-biased technical change?," Applied Economics Letters, Taylor & Francis Journals, vol. 24(18), pages 1346-1350, October.
    • Handle: RePEc:taf:apeclt:v:24:y:2017:i:18:p:1346-1350
    DOI: 10.1080/13504851.2017.1279259
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    References listed on IDEAS

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    5. Marco Manacorda, 2004. "Can the Scala Mobile Explain the Fall and Rise of Earnings Inequality in Italy? A Semiparametric Analysis, 19771993," Journal of Labor Economics, University of Chicago Press, vol. 22(3), pages 585-614, July.
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    Cited by:

    1. Thanos Fragkandreas, 2022. "Three Decades of Research on Innovation and Inequality: Causal Scenarios, Explanatory Factors, and Suggestions," Working Papers 60, Birkbeck Centre for Innovation Management Research, revised Feb 2022.
    2. Matthew Rochat, 2023. "The determinants of growing economic inequality within advanced democracies," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 70(4), pages 457-475, December.

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