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Wage inequality and structural change

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  • Mora, Ricardo

Abstract

This paper studies the effect on wage dispersion of structural change. Unlike previous studies, I use a fully nomparametric model to isolate the effect of changing relationships in the wage structure from changes in wage premia. The results show that increase in within groups inequality accounts for most of the increase in wage dispersion from 1980 to 1985. The rest must be mainly attributed to price changes in the labor market, but not to changes in the interaction of the workers' characteristics.

Suggested Citation

  • Mora, Ricardo, 1999. "Wage inequality and structural change," UC3M Working papers. Economics 6117, Universidad Carlos III de Madrid. Departamento de Economía.
    • Handle: RePEc:cte:werepe:6117
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    4. Durlauf, Steven N & Johnson, Paul A, 1995. "Multiple Regimes and Cross-Country Growth Behaviour," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 10(4), pages 365-384, Oct.-Dec..
    5. John Bound & George Johnson, 1995. "What are the causes of rising wage inequality in the United States?," Economic Policy Review, Federal Reserve Bank of New York, issue Jan, pages 9-17.
    6. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-442, June.
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