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Social conflict and wage inequality

Author

Listed:
  • Jiancai Pi

    (Nanjing University)

  • Pengqing Zhang

    (Nanjing University)

Abstract

This paper studies the relationship between social conflict and skilled–unskilled wage inequality through the three-sector general equilibrium approach. In the basic model without the urban unskilled minimum wage, we find that when the government enhances the degree of controlling social conflict, the skilled–unskilled wage inequality will be narrowed down (resp. widened) if the urban skilled sector is more capital intensive (resp. labor intensive) than the urban unskilled sector. The extended models address the issue under different economic structures or different types of social conflict. In the extended model with the urban unskilled minimum wage, we find that the skilled–unskilled inequality will be widened when the degree of controlling social conflict is increased. In other extended models, we find that the above obtained results are still robust.

Suggested Citation

  • Jiancai Pi & Pengqing Zhang, 2017. "Social conflict and wage inequality," Journal of Economics, Springer, vol. 121(1), pages 29-49, May.
    • Handle: RePEc:kap:jeczfn:v:121:y:2017:i:1:d:10.1007_s00712-016-0515-3
    DOI: 10.1007/s00712-016-0515-3
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    Cited by:

    1. Jiancai Pi & Pengqing Zhang, 2020. "Organized crime and wage inequality," Scottish Journal of Political Economy, Scottish Economic Society, vol. 67(3), pages 344-361, July.
    2. Zhang, Pengqing, 2019. "Automation, wage inequality and implications of a robot tax," International Review of Economics & Finance, Elsevier, vol. 59(C), pages 500-509.
    3. Pi, Jiancai & Zhang, Pengqing, 2021. "Redistribution and wage inequality," International Review of Economics & Finance, Elsevier, vol. 72(C), pages 510-523.
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    6. Jiancai Pi & Yanwei Fan, 2022. "Financial frictions and wage inequality," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(1), pages 1064-1074, January.
    7. Pi, Jiancai & Zhang, Pengqing, 2018. "Structural change and wage inequality," International Review of Economics & Finance, Elsevier, vol. 58(C), pages 699-707.
    8. Jiancai Pi & Xiangyu Huang, 2021. "Product Variety and Wage Inequality," Annals of Economics and Finance, Society for AEF, vol. 22(1), pages 135-151, May.
    9. Eden S. H. Yu & Chi‐Chur Chao, 2021. "Appropriation, firm dynamics, and wage inequality," International Journal of Economic Theory, The International Society for Economic Theory, vol. 17(1), pages 118-129, March.
    10. Sadeghi Amroabadi, Behrouz, 2022. "Analyzing the Asymmetric Cumulative Effects of Rentier State on Income Inequality in Mena Countries," Quarterly Journal of Applied Theories of Economics, Faculty of Economics, Management and Business, University of Tabriz, vol. 9(3), pages 113-146, December.
    11. Jiancai Pi & Shuxi Duan, 2023. "Appropriation, migration, and unemployment," Australian Economic Papers, Wiley Blackwell, vol. 62(3), pages 430-456, September.

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    More about this item

    Keywords

    Social conflict; Skilled–unskilled wage inequality; General equilibrium approach;
    All these keywords.

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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