Solow and Heterogeneous Labour
A Neoclassical Explanation of Wage Inequality
Bibliographic Data
| ID | 9706774 |
|---|---|
| Authors | Jürgen Meckl (University of Konstanz and IZA (Bonn)), Stefan Zink (University of Konstanz) |
| Year | 2004 |
| Volume | 114 |
| Issue | 498 |
| Pages | 825-843 |
| Publication date | 2004-10-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (OUP) (PUBLISHER) |
| DOI | 10.1111/j.1468-0297.2004.00245.x |
| OpenAlex | W3123872318 |
| Language | EN |
| Citations received | 1 |
| References cited | 21 |
This paper analyses the effect of human‐capital investments of heterogeneous individuals on the dynamics of the wage structure within a neoclassical growth model. The accumulation of physical capital changes relative factor prices and thus incentives to acquire skills, thereby altering the composition of the labour force. Without relying on exogenous shocks, our framework generates dynamics that resemble important observations on wage inequality (e.g., the non‐monotone evolution of the skill premium). Additional incorporation of wage rigidities emphasises the trade off between residual wage inequality and employment opportunities for unskilled labour that is consistent with country‐specific evidence
Capital (architecture · Economics · Human capital · Incentive · Inequality · Labour economics · Market economy · Microeconomics · Wage · Wage Inequality · Economic Growth and Productivity · Economic theories and models · Labor market dynamics and wage inequality
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Technological Change and Wages
The Supply of Skilled Labour and Skill‐biased Technological Progress
| Unique citing works | 1 |
|---|---|
| Citations per year | 0,06 |
| Citation span | 2008 - 2008 (1) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 1 |