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1. Between- and within-group wage inequalities, and the advent of new technology.

Author

Miyake, Atsushi, Muro, Kazunobu, Nakamura, Tamotsu, and Yasuoka, Masaya

Subjects
WAGES, EQUALITY in the workplace, TECHNOLOGICAL innovations
Abstract

We present a simple model that explains two features of the dynamics of wage inequalities: between-group and within-group. Individuals are assumed to be heterogeneous in their innate abilities. With the advent of a new technology, each individual decides whether or not to acquire the skill for the new high-tech sector. The heterogeneity explains not only the between-group wage inequality but also the within-group wage inequality, which are observed in advanced countries such as the US and UK. [ABSTRACT FROM AUTHOR]

Published
2009
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