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Why will the Kuznets Curve always reverse ?

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  • Patricia Crifo

    (GATE - Groupe d'analyse et de théorie économique - UL2 - Université Lumière - Lyon 2 - ENS LSH - Ecole Normale Supérieure Lettres et Sciences Humaines - CNRS - Centre National de la Recherche Scientifique)

  • Etienne Lehmann

    (ERMES - Equipe de recherche sur les marches, l'emploi et la simulation - UP2 - Université Panthéon-Assas - CNRS - Centre National de la Recherche Scientifique, EUREQUA - Equipe Universitaire de Recherche en Economie Quantitative - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, CREUSET - Centre de Recherche Economique de l'Université de Saint-Etienne - UJM - Université Jean Monnet - Saint-Étienne)

Abstract

In this paper, we develop a model of innovation-based growth to address the issue of skill-biased technical change over the long run. We show that innovations fluctuate endogenously from skilled to unskilled sectors, thereby generating periods of increasing and decreasing wage inequality. This could contribute to explain that technological progress exerts a non monotonic pressure on wage inequality over the long run.

Suggested Citation

  • Patricia Crifo & Etienne Lehmann, 2001. "Why will the Kuznets Curve always reverse ?," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00179987, HAL.
    • Handle: RePEc:hal:cesptp:halshs-00179987
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00179987
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    References listed on IDEAS

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    1. Bresnahan, Timothy F. & Trajtenberg, M., 1995. "General purpose technologies 'Engines of growth'?," Journal of Econometrics, Elsevier, vol. 65(1), pages 83-108, January.
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