Intermediate Products, Specialization and the Dynamics of Wage Inequality in the US
This paper attempts to reconcile the slowdown in wage inequality in the 1990s with the view that international trade was a major factor contributing to the sharp increases in inequality during the 1980s. I present a model that highlights the importance of intermediate products and attributes the trend reversal of inequality to the restructuring of the economy. The model is supported by evidence on the evolution of the imports of intermediate products.
|Date of creation:||Dec 2006|
|Contact details of provider:|| Web page: https://www.bul.sbu.usi.ch|
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