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Explaining the growing inequality in wages across skill levels

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  • David A. Brauer
  • Susan Hickok

Abstract

This article investigates two prominent explanations--technology and trade--for growing wage inequality by educational attainment. The analysis indicates a prominent role for technological improvements and a modest but still significant role for increased competition from imports.

Suggested Citation

  • David A. Brauer & Susan Hickok, 1995. "Explaining the growing inequality in wages across skill levels," Economic Policy Review, Federal Reserve Bank of New York, issue Jan, pages 61-75.
    • Handle: RePEc:fip:fednep:y:1995:i:jan:p:61-75:n:v.1.no.1
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    References listed on IDEAS

    as
    1. Lawrence F. Katz & Kevin M. Murphy, 1992. "Changes in Relative Wages, 1963–1987: Supply and Demand Factors," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(1), pages 35-78.
    2. DiNardo, John & Fortin, Nicole M & Lemieux, Thomas, 1996. "Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach," Econometrica, Econometric Society, vol. 64(5), pages 1001-1044, September.
    3. Nickell, Stephen & Nicolitsas, D., 1994. "Wages," LSE Research Online Documents on Economics 51644, London School of Economics and Political Science, LSE Library.
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    Citations

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    Cited by:

    1. Christoph Scherrer, 1996. "The economic and political arguments for and against social clauses," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 31(1), pages 9-20, January.
    2. George E. Johnson, 1997. "Changes in Earnings Inequality: The Role of Demand Shifts," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 41-54, Spring.
    3. Pierre-Richard Agenor & Joshua Aizenman, 1996. "Wage Dispersion and Technical Progress," NBER Working Papers 5417, National Bureau of Economic Research, Inc.
    4. Agenor, Pierre-Richard & Aizenman, Joshua, 1997. "Technological change, relative wages, and unemployment," European Economic Review, Elsevier, vol. 41(2), pages 187-205, February.
    5. Gerry Boyle; & Pauline McCormack, 1998. "Trade and Technological Explanations for Changes in Sectoral Labour Demand in OECD Economies," Economics Department Working Paper Series n770598, Department of Economics, National University of Ireland - Maynooth.
    6. Schluter, Gerald E. & Lee, Chinkook, 2004. "Is There a Link between the Changing Skills of Labor Used in U.S. Processed Food Trade and Rural Employment?," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(3), pages 1-13, December.

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