Full Citation

Title: Technological Change and the Income Distribution: Theory and Some Evidence

Citation Type: Working Paper

Publication Year: 2014

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Abstract: This paper considers two types of technological change in a unified model. Type A is unskilled-biased, and yet leads to greater income inequality. Type B increases the scale of operation for an occupation, allowing workers to cheaply produce more. This hurts the least talented workers while possibly benefitting the most talented ones. Together, these technological changes may have contributed to the continuous rise in income inequality that developed economies have witnessed in recent decades. The paper compares the theoretical results with U.S. data and finds support for the predictions.

Url: http://www.essex.ac.uk/economics/discussion-papers/papers-text/dp754.pdf

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Authors: Wang, Tianxi; Wright, Greg C.

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Publication Number: 754

Institution: University of Essex

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Publisher Location: Colchester, England

Data Collections: IPUMS USA

Topics: Labor Force and Occupational Structure, Other

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