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Idea Exchange and Wage Inequality

Author

Listed:
  • Jiancai Pi

    (Department of Economics, Nanjing University)

  • Ping Xu

    (Department of Economics, Nanjing University)

Abstract

This paper investigates how idea exchange affects skilled-unskilled wage inequality. In the basic model with two sectors and full employment, an increase in the intensity of idea exchange in the skilled sector will expand wage inequality; however, an increase in the intensity of idea exchange in the unskilled sector will narrow down wage inequality. In most of the extended models, the main results are almost the same as those of the basic model. However, in the extended model with the skilled product employed in the unskilled sector, the main results are greatly different from those of the basic model. This paper embeds idea exchange into the framework of skilled-unskilled wage inequality.

Suggested Citation

  • Jiancai Pi & Ping Xu, 2023. "Idea Exchange and Wage Inequality," Annals of Economics and Finance, Society for AEF, vol. 24(1), pages 69-89, May.
    • Handle: RePEc:cuf:journl:y:2023:v:24:i:1:pixu
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    References listed on IDEAS

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    More about this item

    Keywords

    Idea exchange; Skilled-unskilled wage inequality; General equilibrium approach;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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