Unraveling wage inequality
Tangible and intangible assets, globalization and labor market regulations
Bibliographic Data
| ID | 21541756 |
|---|---|
| Authors | Antonio Francesco Gravina (0000-0001-9509-8343, University of Palermo, corresponding author), Neil Foster‐McGregor (0000-0003-3180-7547, Asian Development Bank), Neil Foster-McGregor |
| Year | 2024 |
| Volume | 67 |
| Issue | 4 |
| Pages | 1375-1420 |
| Publication date | 2024-10-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Empirical Economics (JOURNAL) |
| Journal identifiers | ISSN: 0377-7332 • E-ISSN: 1435-8921 |
| Publisher | Springer Science and Business Media LLC (PUBLISHER) |
| DOI | 10.1007/s00181-024-02587-y |
| OpenAlex | W4396779942 |
| Language | EN |
| References cited | 93 |
In this paper, we study the asymmetric effects of different types of capital-embodied technological change, as proxied by tangible and intangible assets, on relative wages (high- to medium-skilled, high- to low-skilled and medium- to low-skilled workers), relying upon the technology-skill complementarity and polarization of the labor force frameworks. We also consider two additional major channels that contribute to shaping wage differentials: globalization (in terms of trade openness and global value chains participation) and labor market institutions. The empirical analysis is carried out using a panel dataset comprising 17 mostly advanced European economies and 5 industries, with annual observations spanning the period 2008–2017. Our findings suggest that software and databases—as a proxy for intangible technologies—exert downward pressure on low-skilled wages, while robotics is associated with a polarization of the wage distribution at the expense of middle-skilled labor. Additionally, less-skilled workers’ relative wages are negatively affected by trade openness and global value chain participation, but positively influenced by sector-specific labor market regulations
Economics · Globalization · Inequality · Labour economics · Market economy · Wage · Wage Inequality · Employment and Welfare Studies · Labor market dynamics and wage inequality · Labor Movements and Unions
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Intangible Capital and u.s. Economic Growth
The Polarization of the U.S. Labor Market
The Adjustment of Labor Markets to Robots
Elasticities and the Inverse Hyperbolic Sine Transformation
Low-Skill and High-Skill Automation
Explaining Job Polarization
Instrumental quantile regression inference for structural and treatment effect models
General purpose technologies ‘Engines of growth’?
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The Wage Effects of Offshoring
Technology usage, expected job sustainability, and perceived job insecurity
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The Race between Education and Technology
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Capital-Skill Complementarity
Lousy and Lovely Jobs
Integrated sectors - diversified earnings
Trade liberalization and wage inequality
The Embodiment Hypothesis
Robots and Jobs
International Outsourcing and the Skill Structure of Labour Demand in the United Kingdom
The Skill Bias of World Trade
Automation and New Tasks
Labor Market Institutions and Wage Inequality
Slicing Up Global Value Chains
| Highly cited | No |
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