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Spatial Wage Inequality and Technological Change

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  • Charlotte Senftleben-König

    (Humboldt-Universitaet zu Berlin)

  • Hanna Wielandt

    (Humboldt-Universitaet zu Berlin)

Abstract

During the last decades, wage inequality in Germany has considerably increased both within and across regions. Building on concepts of the task-based approach, this paper studies whether and to what extent these developments are driven by technological change. We present novel evidence that technological change is positively related to intra-regional wage inequality. This is driven by increases in the compensation for non-routine cognitive tasks that are prevalent at upper percentiles of the wage distribution combined with decreases in the compensation for non-routine manual tasks, which are located at lower percentiles. Because there exists substantial variation in the degree of technology exposure across German regions, technological change can also explain part of the rise in inter-regional wage inequality. Creation Date: 2014-12-08

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  • Charlotte Senftleben-König & Hanna Wielandt, "undated". "Spatial Wage Inequality and Technological Change," BDPEMS Working Papers 2014008, Berlin School of Economics.
    • Handle: RePEc:bdp:wpaper:2014008
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    3. Dauth, Wolfgang, 2014. "Job polarization on local labor markets," IAB-Discussion Paper 201418, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    4. Eichhorst, Werner & Arni, Patrick & Buhlmann, Florian & Isphording, Ingo E. & Tobsch, Verena, 2015. "Wandel der Beschäftigung: Polarisierungstendenzen auf dem deutschen Arbeitsmarkt," IZA Research Reports 68, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Spatial Changes; Wage Inequality; Job Tasks; Technological Change;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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