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Wage Gap and Technology

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  • Madsen, B.J.

Abstract

In this paper, the real wage gap is estimated under the Cobb-Douglas, the constant elasticity of substitution, and the translog technology assumptions for twenty-two OECD countries over the period 1960 to 1988. Employing pooled time-series and cross-section data, the extent to which the real wage gap path, under the different technology assumptions, has contributed to the unemployment path is estimated. The results indicate that the real wage gap is sensitive to technology assumption and at best it has marginally contributed to changes in unemployment across countries and over time. Copyright 1994 by WWZ and Helbing & Lichtenhahn Verlag AG
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Suggested Citation

  • Madsen, B.J., 1991. "Wage Gap and Technology," Papers 227, Australian National University - Department of Economics.
  • Handle: RePEc:fth:aunaec:227
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    Cited by:

    1. Madsen, Jakob B., 1995. "Inflation and aggregate demand shocks," Journal of Policy Modeling, Elsevier, vol. 17(6), pages 659-666, December.
    2. Junankar, P.N. & Madsen, J.B., 1996. "Unemployment in the OECD: models and mysteries," Discussion Paper Series In Economics And Econometrics 9648, Economics Division, School of Social Sciences, University of Southampton.

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    Keywords

    labour market ; wages ; unemployment ; technology;

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