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Technological Progress And Income Inequality

Author

Listed:
  • KARNI, E.
  • ZILCHA, I.

Abstract

This paper examines the effects of Hicks-neutral, Harrod-neutral, and Solow-neutral technological improvements on the distribution of income in an overlapping generations economy with endogenous labor supply and a bequest motive. Income inequality in this model is generated by a stochastic process representing random variations in intergenerational transfers and pure luck. The comparative dynamics analysis trace the effects of the aforementioned technological changes in each and every period after they occur. These effects depend on the nature of the technological change and on the elasticity of substitution.
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Suggested Citation

  • Karni, E. & Zilcha, I., 1990. "Technological Progress And Income Inequality," Papers 1-90, Tel Aviv.
  • Handle: RePEc:fth:teavfo:1-90
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    Citations

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    Cited by:

    1. Jean‐Marie Viaene & Itzhak Zilcha, 2009. "Human Capital and Inequality Dynamics: The Role of Education Technology," Economica, London School of Economics and Political Science, vol. 76(304), pages 760-778, October.
    2. Ronald Fischer, 1999. "Income distribution and Trade Liberalization," Documentos de Trabajo 67, Centro de Economía Aplicada, Universidad de Chile.
    3. Zilcha, I., 1996. "Intergenerational Transfers, Economic Growth and Income Distribution," Papers 27-96, Tel Aviv - the Sackler Institute of Economic Studies.
    4. Viaene, Jean-Marie & Zilcha, Itzhak, 1997. "Capital Markets Integration, Growth and Income Distribution: A Dynamic Analysis," Foerder Institute for Economic Research Working Papers 275628, Tel-Aviv University > Foerder Institute for Economic Research.
    5. João Ricardo Faria & Miguel A. León‐Ledesma, 2004. "Habit formation, work ethics and technological progress," Manchester School, University of Manchester, vol. 72(3), pages 403-413, June.
    6. Murat Cetin & Harun Demir & Selin Saygin, 2021. "Financial Development, Technological Innovation and Income Inequality: Time Series Evidence from Turkey," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 156(1), pages 47-69, July.
    7. Yoshinori Kurokawa, 2011. "Variety-skill complementarity: a simple resolution of the trade-wage inequality anomaly," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 46(2), pages 297-325, February.
    8. Zilcha, Itzhak, 2003. "Intergenerational transfers, production and income distribution," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 489-513, March.
    9. repec:bla:econom:v:59:y:1992:i:234:p:221-33 is not listed on IDEAS
    10. Betts, Julian R., 1989. "Technological Change, Sectoral Shifts and the Distribution of Earnings: A Human Capital Model," Queen's Institute for Economic Research Discussion Papers 275217, Queen's University - Department of Economics.
    11. Kaganovich, Michael & Zilcha, Itzhak, 2012. "Pay-as-you-go or funded social security? A general equilibrium comparison," Journal of Economic Dynamics and Control, Elsevier, vol. 36(4), pages 455-467.
    12. Tomiwa Sunday Adebayo, 2024. "Exploring the heterogeneous impact of technological innovation on income inequality: Formulating the SDG policies for the BRICS-T economies," Energy & Environment, , vol. 35(4), pages 1773-1792, June.

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