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Financial Development and Wage Inequality: Theory and Evidence from US States

Author

Listed:
  • Malhar Nabar

    (Wellesley College)

  • Michal Jerzmanowski

    (Clemson University)

Abstract

development is an independent source of the rise in the skill premium in the US since the 1980s, as well as a factor magnifying the effects of technological progress and trade. We provide evidence in support of the model's predictions.

Suggested Citation

  • Malhar Nabar & Michal Jerzmanowski, 2007. "Financial Development and Wage Inequality: Theory and Evidence from US States," 2007 Meeting Papers 890, Society for Economic Dynamics.
    • Handle: RePEc:red:sed007:890
    as

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    References listed on IDEAS

    as
    1. Daron Acemoglu, 1999. "Changes in Unemployment and Wage Inequality: An Alternative Theory and Some Evidence," American Economic Review, American Economic Association, vol. 89(5), pages 1259-1278, December.
    2. Samuel Kortum & Josh Lerner, 2000. "Assessing the Contribution of Venture Capital to Innovation," RAND Journal of Economics, The RAND Corporation, vol. 31(4), pages 674-692, Winter.
    3. Daron Acemoglu, 1998. "Why Do New Technologies Complement Skills? Directed Technical Change and Wage Inequality," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(4), pages 1055-1089.
    4. Jerzmanowski, Michal & Nabar, Malhar, 2008. "The welfare consequences of irrational exuberance: Stock market booms, research investment, and productivity," Journal of Macroeconomics, Elsevier, vol. 30(1), pages 111-133, March.
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    Cited by:

    1. Thorsten Beck & Ross Levine & Alexey Levkov, 2010. "Big Bad Banks? The Winners and Losers from Bank Deregulation in the United States," Journal of Finance, American Finance Association, vol. 65(5), pages 1637-1667, October.
    2. Beck, Thorsten & Levine, Ross & Levkov, Alexey, 2007. "Big bad banks ? the impact of U.S. branch deregulation on income distribution," Policy Research Working Paper Series 4330, The World Bank.

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