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Growth, Trade and Inequality in an Efficiency-Wage Framework

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Abstract

The last twenty years have seen a rise of inequalities and a slowdown of growth in the US and Europe. It is common wisdom to interpret the rise of inequalities as the result of a skill-biased labor demand shift. While there is a strong evidence that such a shift has happened, this overlooks the fact that inequality has also markedly risen between individuals with the same qualification. Moreover, endogenous growth models usually predict that this kind of labor demand shift should have been growth enhancing.

Suggested Citation

  • Mendez, R., 1998. "Growth, Trade and Inequality in an Efficiency-Wage Framework," Papiers d'Economie Mathématique et Applications 98.10, Université Panthéon-Sorbonne (Paris 1).
    • Handle: RePEc:fth:pariem:98.10
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    More about this item

    Keywords

    EFFICIENCY ; WAGES ; ECONOMIC GROWTH ; LABOUR MARKET ; INTERNATIONAL TRADE;
    All these keywords.

    JEL classification:

    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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