Full Citation

Title: Search Engines vs Steam Engines: A Theory and Some Evidence on Technology, Career Choice and the Income Distribution

Citation Type: Miscellaneous

Publication Year: 2015

ISBN:

ISSN:

DOI:

NSFID:

PMCID:

PMID:

Abstract: This paper considers the implications of two types of technological change for the income distribution with a unified model in which occupational choice plays a key role. Type A technological change augments the productivity of unskilled labor and yet leads to greater income inequality, while raising the level of overall income. Type B expands the range over which Increasing Returns to Scale (IRS) operate in some occupations, by increasing the scale of operation for all workers. This hurts the least talented workers while possibly benefitting the most talented ones, and increases income inequality. The paper compares the theoretical results with U.S. data and finds support for the predictions.

Url: http://privatewww.essex.ac.uk/~wangt/TechChange_Inequality_27Jan15.pdf

User Submitted?: No

Authors: Wang, Tianxi; Wright, Greg C

Publisher: University of Essex

Data Collections: IPUMS USA

Topics: Other

Countries: