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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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File URL: http://econwpa.repec.org/eps/pe/papers/0203/0203004.pdf
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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
Contact details of provider: Web page: http://econwpa.repec.org

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  13. 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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  17. Grossman, G.M. & Helpman, E., 1989. "Quality Ledders In The Theory Of Growth," Papers 148, Princeton, Woodrow Wilson School - Public and International Affairs.
  18. Daron Acemoglu, 1998. "Why Do New Technologies Complement Skills? Directed Technical Change And Wage Inequality," The Quarterly Journal of Economics, MIT Press, vol. 113(4), pages 1055-1089, November.
  19. David Card & Francis Kramarz & Thomas Lemieux, 1999. "Changes in the Relative Structure of Wages and Employment: A Comparison of the United States, Canada, and France," Canadian Journal of Economics, Canadian Economics Association, vol. 32(4), pages 843-877, August.
  20. Walde, Klaus, 1999. "A Model of Creative Destruction with Undiversifiable Risk and Optimising Households," Economic Journal, Royal Economic Society, vol. 109(454), pages C156-71, March.
  21. Zeira, Joseph, 1995. "Workers, Machines and Economic Growth," CEPR Discussion Papers 1139, C.E.P.R. Discussion Papers.
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  24. Nickell, Stephen & Bell, Brian, 1996. "Changes in the Distribution of Wages and Unemployment in OECD Countries," American Economic Review, American Economic Association, vol. 86(2), pages 302-08, May.
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