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Technological Change, Labour Demand and Income Distribution in European Union Countries

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  • Cristiano Perugini
  • Fabrizio Pompei

Abstract

This paper provides empirical evidence of the link between technological change in different technology intensive sectors and overall income (and not simply earnings) inequality in some EU eastern and western countries. In a first step, skill-biased technological change hypothesis is tested distinguishing various technology intensive sectors: results confirm the presence of skill-complementary technologies but also stress the skill-replacing character of other ones incorporated into investment flows. The second step places the evolutions of sector skilled-labour demand among other traditional determinants of income inequality. Findings reveal significant and composite impacts of skilled-labour demand, strongly depending on sectoral differences in technological intensity.

Suggested Citation

  • Cristiano Perugini & Fabrizio Pompei, 2008. "Technological Change, Labour Demand and Income Distribution in European Union Countries," Quaderni del Dipartimento di Economia, Finanza e Statistica 56/2008, Università di Perugia, Dipartimento Economia.
  • Handle: RePEc:pia:wpaper:56/2008
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    References listed on IDEAS

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    Cited by:

    1. Mirella Damiani, 2010. "Labour regulation, corporate governance and varieties of capitalism," Quaderni del Dipartimento di Economia, Finanza e Statistica 76/2010, Università di Perugia, Dipartimento Economia.
    2. Stefano Herzel & Marco Nicolosi & Cătălin Stărică, 2012. "The cost of sustainability in optimal portfolio decisions," The European Journal of Finance, Taylor & Francis Journals, vol. 18(3-4), pages 333-349, May.
    3. Damiani, Mirella & Pompei, Fabrizio & Ricci, Andrea, 2011. "Temporary job protection and productivity growth in EU economies," MPRA Paper 29698, University Library of Munich, Germany.
    4. Davide Castellani & Fabio Pieri, 2011. "Foreign Investments and Productivity Evidence from European Regions," Quaderni del Dipartimento di Economia, Finanza e Statistica 83/2011, Università di Perugia, Dipartimento Economia.
    5. Silvia Micheli, 2010. "Learning Curve and Wind Power," Quaderni del Dipartimento di Economia, Finanza e Statistica 81/2010, Università di Perugia, Dipartimento Economia.
    6. Francesco Venturini, 2011. "Product variety, product quality, and evidence of Schumpeterian endogenous growth: a note," Quaderni del Dipartimento di Economia, Finanza e Statistica 93/2011, Università di Perugia, Dipartimento Economia.

    More about this item

    Keywords

    FDI; technological change; skills; income distribution;

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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