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Ability Biased Technological Transition, Wage Inequality, and Economic Growth

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Abstract

This paper develops a growth model in which the endogenous evolution of technological change and wage inequality is consistent with the observed pattern in the US and several other countries in the last two centuries. The evolution of the economy and its impact on wage inequality is based upon three central elements that appear consistent with empirical evidence.

Suggested Citation

  • Oded Galor & Omer Moav, 1998. "Ability Biased Technological Transition, Wage Inequality, and Economic Growth," Working Papers 98-14, Brown University, Department of Economics.
    • Handle: RePEc:bro:econwp:98-14
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    Keywords

    TECHNOLOGICAL CHANGE ; ECONOMIC GROWTH;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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