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Neutral Technological Change and the Skill Premium

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  • Thomas Moutos

Abstract

We construct a two sector general equilibrium model in which one sector produces a homogeneous good and the other sector produces a vertically differentiated good. We demonstrate that uniform (across sectors) and (Hicks) neutral technological change can cause an increase in the skill premium.

Suggested Citation

  • Thomas Moutos, 2000. "Neutral Technological Change and the Skill Premium," CESifo Working Paper Series 385, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_385
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    References listed on IDEAS

    as
    1. Eli Bekman & John Bound & Stephen Machin, 1998. "Implications of Skill-Biased Technological Change: International Evidence," The Quarterly Journal of Economics, Oxford University Press, vol. 113(4), pages 1245-1279.
    2. Eli Berman & John Bound & Zvi Griliches, 1994. "Changes in the Demand for Skilled Labor within U. S. Manufacturing: Evidence from the Annual Survey of Manufactures," The Quarterly Journal of Economics, Oxford University Press, vol. 109(2), pages 367-397.
    3. Stephen Machin & John Van Reenen, 1998. "Technology and Changes in Skill Structure: Evidence from Seven OECD Countries," The Quarterly Journal of Economics, Oxford University Press, vol. 113(4), pages 1215-1244.
    4. 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.
    5. David H. Autor & Lawrence F. Katz & Alan B. Krueger, 1998. "Computing Inequality: Have Computers Changed the Labor Market?," The Quarterly Journal of Economics, Oxford University Press, vol. 113(4), pages 1169-1213.
    6. Flam, Harry & Helpman, Elhanan, 1987. "Vertical Product Differentiation and North-South Trade," American Economic Review, American Economic Association, vol. 77(5), pages 810-822, December.
    7. repec:fth:prinin:377 is not listed on IDEAS
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    Citations

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    Cited by:

    1. Thomas Moutos & William Scarth, 2002. "Technical Change and Unemployment: Policy Responses and Distributional Considerations," CESifo Working Paper Series 710, CESifo Group Munich.
    2. Nathalie Chusseau & Michel Dumont, 2012. "Growing income inequalities in advanced countries," Working Papers 260, ECINEQ, Society for the Study of Economic Inequality.
    3. Thomas Moutos, 2006. "Technological Change, Inequality And Work Sharing," Scottish Journal of Political Economy, Scottish Economic Society, vol. 53(3), pages 305-318, July.
    4. Dumont, Michel, 2004. "The Impact of International Trade with Newly Industrialised Countries on the Wages and Employment of Low-Skilled and High-Skilled Workers in the European Union," MPRA Paper 83525, University Library of Munich, Germany.
    5. Nathalie Chusseau & Michel Dumont, 2012. "Growing Income Inequalities in Advanced," Working Papers hal-00993359, HAL.

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