Wage Gap and Technology
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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