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Egalitarian and elitist education systems as the basis for international differences in wage inequality

  • Klaus Wälde

    (University of Dresden)

This paper investigates one reason why some countries have experienced a strong increase in wage inequality over the last decades while others have not. The explanation is based on the link between the quality of education and induced technological change. A country with qualitatively better-educated skilled workers, relative to unskilled workers, has a higher ratio of human capital to labour than a country where the quality of education is more equal across education levels. These differences lead to different paths of induced technological change across countries, which in turn imply different histories of the distribution of labour income.

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Paper provided by EconWPA in its series Public Economics with number 0203004.

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Length: 24 pages
Date of creation: 21 Mar 2002
Date of revision:
Handle: RePEc:wpa:wuwppe:0203004
Note: Type of Document - Tex; prepared on IBM PC; pages: 24 ; figures: included
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  19. John E. DiNardo & Jorn-Steffen Pischke, 1996. "The Returns to Computer Use Revisited: Have Pencils Changed the Wage Structure Too?," NBER Working Papers 5606, National Bureau of Economic Research, Inc.
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