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Author: Manisha Goel Publisher: ISBN: Category : Languages : en Pages : 47
Book Description
Wage inequality has risen in India over the past three decades. A similar phenomenon has been documented widely for other developing countries. However, unlike in other countries, which saw widening wage structures both between and within skill groups, I show that inequality in India increased between groups but fell within them over the period 1983-2005. Returns to education increased with the wages of college graduates rising relative to high school graduates who, in turn, earned increasingly more than less educated workers. But workers within education groups witnessed lower wage dispersion over time. Defining demographic groups more narrowly, by additionally including characteristics such as experience, gender, industry and state, among others, regression results show that inequality increased between them while simultaneously declining within them, as indicated by a compression of the residual wage inequality. Decomposition analysis attributes the decline in wage dispersion within groups to falling returns to unobservable characteristics. This, previously undocumented, divergent trend in inequality between and within skill groups in India cannot be explained by the three main arguments in the extant literature for why developing countries have witnessed a rise in wage inequality in recent decades following trade liberalization - greater imports of skill-complementary technology, offshoring, and reallocation of skilled labor towards exporting firms. I provide several pieces of suggestive evidence to argue that reduction in labor market frictions and growth in offshored tasks from developed countries that are routine in content, but performed by high-skilled workers, can lead to the divergent trends in inequality between and within groups. Compositional changes in the labor force do not account for the inequality patterns witnessed in India.
Author: Manisha Goel Publisher: ISBN: Category : Languages : en Pages : 47
Book Description
Wage inequality has risen in India over the past three decades. A similar phenomenon has been documented widely for other developing countries. However, unlike in other countries, which saw widening wage structures both between and within skill groups, I show that inequality in India increased between groups but fell within them over the period 1983-2005. Returns to education increased with the wages of college graduates rising relative to high school graduates who, in turn, earned increasingly more than less educated workers. But workers within education groups witnessed lower wage dispersion over time. Defining demographic groups more narrowly, by additionally including characteristics such as experience, gender, industry and state, among others, regression results show that inequality increased between them while simultaneously declining within them, as indicated by a compression of the residual wage inequality. Decomposition analysis attributes the decline in wage dispersion within groups to falling returns to unobservable characteristics. This, previously undocumented, divergent trend in inequality between and within skill groups in India cannot be explained by the three main arguments in the extant literature for why developing countries have witnessed a rise in wage inequality in recent decades following trade liberalization - greater imports of skill-complementary technology, offshoring, and reallocation of skilled labor towards exporting firms. I provide several pieces of suggestive evidence to argue that reduction in labor market frictions and growth in offshored tasks from developed countries that are routine in content, but performed by high-skilled workers, can lead to the divergent trends in inequality between and within groups. Compositional changes in the labor force do not account for the inequality patterns witnessed in India.
Author: Charles R. Hulten Publisher: University of Chicago Press ISBN: 022656794X Category : Business & Economics Languages : en Pages : 528
Book Description
Over the past few decades, US business and industry have been transformed by the advances and redundancies produced by the knowledge economy. The workplace has changed, and much of the work differs from that performed by previous generations. Can human capital accumulation in the United States keep pace with the evolving demands placed on it, and how can the workforce of tomorrow acquire the skills and competencies that are most in demand? Education, Skills, and Technical Change explores various facets of these questions and provides an overview of educational attainment in the United States and the channels through which labor force skills and education affect GDP growth. Contributors to this volume focus on a range of educational and training institutions and bring new data to bear on how we understand the role of college and vocational education and the size and nature of the skills gap. This work links a range of research areas—such as growth accounting, skill development, higher education, and immigration—and also examines how well students are being prepared for the current and future world of work.
Author: Chinhui Juhn Publisher: ISBN: Category : Industries Languages : en Pages : 56
Book Description
Using data from the 1940-1980 Decennial Census and the 1988-1992 March Current Population Surveys, this paper examines the impact of industrial change on male wage inequality over a period of five decades (1940-1990). Alternative measures of skill such as the wage percentile, education and occupation indicate that wage inequality between more and less skilled male workers fell substantially during the 1940s and increased most dramatically during the 1980s. Examination of industrial change over this longer time period shows that the demand for the most highly educated and skilled male workers relative to the least skilled male workers increased no faster during the 1970s and the 1980s than during the earlier decades. In contrast, the demand for men in the middle skill categories (such as those in basic manufacturing) expanded during the 1940s and the 1950s and contracted severely during the 1970s and 1980s. This suggests that the growth of jobs in the middle skill categories may be closely related to overall wage inequality. Cross sectional regressions based on state level data also show some empirical support for the hypothesis that a decline in demand for medium skilled groups increases overall wage inequality.
Author: Julián Messina Publisher: World Bank Publications ISBN: 1464810400 Category : Business & Economics Languages : en Pages : 292
Book Description
What caused the decline in wage inequality of the 2000s in Latin America? Looking to the future, will the current economic slowdown be regressive? Wage Inequality in Latin America: Understanding the Past to Prepare for the Future addresses these two questions by reviewing relevant literature and providing new evidence on what we know from the conceptual, empirical, and policy perspectives. The answer to the fi rst question can be broken down into several parts, although the bottom line is that the changes in wage inequality resulted from a combination of three forces: (a) education expansion and its eff ect on falling returns to skill (the supply-side story); (b) shifts in aggregate domestic demand; and (c) exchange rate appreciation from the commodity boom and the associated shift to the nontradable sector that changed interfi rm wage diff erences. Other forces had a non-negligible but secondary role in some countries, while they were not present in others. These include the rapid increase of the minimum wage and a rapid trend toward formalization of employment, which played a supporting role but only during the boom. Understanding the forces behind recent trends also helps to shed light on the second question. The analysis in this volume suggests that the economic slowdown is putting the brakes on the reduction of inequality in Latin America and will likely continue to do so—but it might not actually reverse the region’s movement toward less wage inequality.
Author: Guido Matias Cortes Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
We argue that skill-biased technological change not only affects wage gaps between skill groups, but also increases wage inequality within skill groups, across workers in different workplaces. Building on a heterogeneous firm framework with labor market frictions, we show that an industry-wide skill-biased technological change shock will increase between-firm wage inequality within the industry through four main channels: changes in the skill wage premium (as in traditional models of technological change); increased employment concentration in more productive firms; increased wage dispersion between firms for workers of the same skill type; and increased dispersion in the skill mix that firms employ, due to more sorting of skilled workers to more productive firms. Using rich administrative matched employer-employee data from Germany, we provide empirical evidence of establishment-level patterns that are in line with the predictions of the model. We further document that industries with more technological adoption exhibit particularly pronounced patterns along the dimensions highlighted by the model.
Author: Bernd Fitzenberger Publisher: Springer Science & Business Media ISBN: 3642586872 Category : Business & Economics Languages : en Pages : 255
Book Description
For some time, it has been debated whether a lack of wage flexibility is at the roots of the high and persistent unemployment in West Germany. In the presence of a skill bias in labor demand, which increases the relative de mand for more highly skilled labor over time, there only seems to exist the choice between higher wage inequality or higher unemployment rates. This study scrutinizes whether and in what way this line of thought is consis tent with empirical findings for West Germany. The analysis ranges from extensive descriptive evidence on wage trends to the estimation of a struc tural model of wage bargaining. As the most important database, I use the IAB-Beschiiftigtenstichprobe from 1975 to 1990. This study was accepted as a Habilitation thesis by the Department of Economics and Statistics of the University of Konstanz in October 1998. The only major change relates to appendix B on the block bootstrap procedure now summarizing the main aspects of the method. I am very grateful to my advisor Prof. Dr. Wolfgang Franz for his support, encouragement, and inspiration. From 1993 to 1997, he ran the Center for International Labor Economics at the University of Konstanz in such a way that it provided a fruitful environment for empirical research in labor economics. I am also indebted to Prof. Dr. Winfried Pohlmeier and to Prof. Dr. Gerd Ronning for undertaking the task to evaluate my Habilitation thesis.
Author: Maurizio Franzini Publisher: Routledge ISBN: 1317561023 Category : Business & Economics Languages : en Pages : 127
Book Description
Inequalities in incomes and wealth have increased in advanced countries, making our economies less dynamic, our societies more unjust and our political processes less democratic. As a result, reducing inequalities is now a major economic, social and political challenge. This book provides a concise yet comprehensive overview of the economics of inequality. Until recently economic inequality has been the object of limited research efforts, attracting only modest attention in the political arena; despite important advances in the knowledge of its dimensions, a convincing understanding of the mechanisms at its roots is still lacking. This book summarizes the topic and provides an interpretation of the mechanisms responsible for increased disparities. Building on this analysis the book argues for an integrated set of policies addressing the roots of inequalities in incomes and wealth Explaining Inequality will be of interest to students, researchers and practitioners concerned with inequality, economic and public policy and political economy.
Author: Claudia Goldin Publisher: Harvard University Press ISBN: 0674037731 Category : Business & Economics Languages : en Pages : 497
Book Description
This book provides a careful historical analysis of the co-evolution of educational attainment and the wage structure in the United States through the twentieth century. The authors propose that the twentieth century was not only the American Century but also the Human Capital Century. That is, the American educational system is what made America the richest nation in the world. Its educational system had always been less elite than that of most European nations. By 1900 the U.S. had begun to educate its masses at the secondary level, not just in the primary schools that had remarkable success in the nineteenth century. The book argues that technological change, education, and inequality have been involved in a kind of race. During the first eight decades of the twentieth century, the increase of educated workers was higher than the demand for them. This had the effect of boosting income for most people and lowering inequality. However, the reverse has been true since about 1980. This educational slowdown was accompanied by rising inequality. The authors discuss the complex reasons for this, and what might be done to ameliorate it.
Author: Giulia Faggio Publisher: ISBN: Category : Industrial productivity Languages : en Pages : 80
Book Description
There has been a remarkable increase in wage inequality in the US, UK and many other countries over the past three decades. A significant part of this appears to be within observable groups (such as age-gender-skill cells). A generally untested implication of many theories rationalizing the growth of within-group inequality is that firm-level productivity dispersion should also have increased. The relevant data for the US is problematic, so we utilize a UK panel dataset covering the manufacturing and non-manufacturing sectors since the early 1980s. We find evidence that productivity inequality has increased. Existing studies have underestimated this increased dispersion because they use data from the manufacturing sector which has been in rapid decline. Most of the increase in individual wage inequality has occurred because of an increase in inequality between firms (and within industries). Increased productivity dispersion appears to be linked with new technologies as suggested by models such as Caselli (1999) and is not primarily due to an increase in transitory shocks, greater sorting or entry/exit dynamics.
Author: Manisha Goel
Author: Manisha Goel
Author: Oded Galor
Author: Charles R. Hulten
Author: Chinhui Juhn
Author: Julián Messina
Author: Guido Matias Cortes
Author: Bernd Fitzenberger
Author: Maurizio Franzini
Author: Claudia Goldin
Author: Giulia Faggio