The Role of Education in Mitigating Automation’s Effect on Wage Inequality

Labour ◽  
2020 ◽  
Author(s):  
Raja Bentaouet Kattan ◽  
Kevin Macdonald ◽  
Harry Anthony Patrinos
Keyword(s):  
Wage Inequality

scholarly journals Inequality between capital and labour and among wage-earners: the role of collective bargaining and trade unions

2021 ◽  
Vol 27 (1) ◽  
pp. 29-46
Author(s):  
Maarten Keune
Keyword(s):  
Collective Bargaining ◽  
Wage Inequality ◽  
Trade Unions ◽  
Bargaining Power ◽  
Union Density ◽  
General Terms ◽  
Union Bargaining Power ◽  
Wage Earners ◽  
The Relationship

In the context of rising inequality between capital and labour and among wage-earners in Europe, this state-of-the-art article reviews the literature concerning the relationship between collective bargaining and inequality. It focuses on two main questions: (i) what is the relationship between collective bargaining, union bargaining power and inequality between capital and labour? and (ii) what is the relationship between collective bargaining, union bargaining power and wage inequality among wage-earners? Both questions are discussed in general terms and for single- and multi-employer bargaining systems. It is argued that collective bargaining coverage and union density are negatively related to both types of inequality. These relationships are however qualified by four additional factors: who unions represent, the weight of union objectives other than wages, the statutory minimum wage, and extensions of collective agreements by governments.

Wage Inequality on the Rise: The Role of Workers' Characteristics

2016 ◽  
pp. 99-123
Author(s):  
Guillermo Alves ◽  
Matías Brum ◽  
Mijail Yapor
Keyword(s):  
Human Capital ◽  
Public Sector ◽  
Income Inequality ◽  
Wage Inequality ◽  
Increasing Returns ◽  
Developing Economy ◽  
Public Sector Employment ◽  
The World

In recent decades, wage inequality has been an important factor behind the rise in income inequality around the world. The leading explanation for increased wage inequality has been the increasing returns to human capital, usually attributed to changing technology and globalization. This article studies the rise in wage inequality in Uruguay, a small open developing economy. In contrast with popular explanations, our results highlight a strong and gradual inequalizing effect of changes in workers’ characteristics, such as increased schooling and age, decline of public sector employment and contraction of employment in manufacturing together with increased employment in services.

Market and Institutional Determinants of Wage Differentiation in Russia

ILR Review ◽  
2002 ◽  
Vol 55 (4) ◽  
pp. 628-648 ◽  
Author(s):  
Simon Clarke
Keyword(s):  
Labor Market ◽  
World Bank ◽  
Wage Inequality ◽  
Institutional Economics ◽  
Industrial Relations ◽  
Wage Determination ◽  
Market Theory ◽  
Institutional Determinants ◽  
Competitive Labor Market

Using a range of official and survey data, the author evaluates the relative success of two approaches—competitive labor market theory and industrial relations theory/institutional economics—in explaining wage determination in Russia. Following a review of the analysis of wage determination by an influential team of World Bank economists, the author shows that increased wage inequality in Russia is dominated by inequality within occupational categories within local labor markets. Such inequality, he suggests, is primarily associated with inter-firm differences in wage levels, rather than barriers to labor mobility or differences in “human capital.” Such a pattern of differentiation entirely accords with the analyses of those institutional economists and industrial relations theorists who stress the role of the wage in regulating and motivating the labor force above its role in securing labor market equilibrium. The paper concludes by outlining the institutional framework of wage determination that underlies the observed results.

Growth and Inequality in Closed and Open Economies: The Role of the Product Cycle

2008 ◽  
Vol 8 (1) ◽  
Author(s):  
Priya Ranjan
Keyword(s):  
Trade Liberalization ◽  
Wage Inequality ◽  
Productivity Growth ◽  
Technological Progress ◽  
Research Effort ◽  
Product Cycle ◽  
Skill Intensity ◽  
Increase Productivity ◽  
New Goods

Abstract The product cycle literature suggests that new goods have a higher skill intensity in the early phase of production, which declines once the production process becomes standardized. Using this insight it is shown how an increase in the rate of neutral technological progress, which frees up resources tied in the production of existing goods, leads to increased production of skill intensive new goods and consequently an increase in wage inequality. When technological progress is exogenous, a decrease in skill endowment or trade liberalization with a skill scarce country increases wage inequality but leaves the composition of production between new and standardized goods unaltered. When the rate of technological progress depends on research effort, trade between a skill-abundant Northern economy and a skill-scarce Southern economy can raise wage inequality in both countries and increase productivity growth in the latter. North-North trade increases both wage inequality and productivity growth.

scholarly journals The role of skills and tasks in changing employment trends and income inequality in Chile

2021 ◽  
Author(s):  
Gabriela Zapata-Román
Keyword(s):  
Income Inequality ◽  
Wage Inequality ◽  
Returns To Education ◽  
Decomposition Methods ◽  
Skill Premium ◽  
Cognitive Tasks ◽  
Occupational Structure ◽  
Job Polarization ◽  
Employment Trends

Using decomposition methods, we analyse the role of the changing nature of work in explaining changes in employment, wage inequality, and job polarization in Chile from 1992 to 2017. Changes in occupational structure confirm a displacement of workers from low-skill occupations towards jobs demanding non-routine higher skills (professionals and technicians), and to jobs demanding routine manual and cognitive tasks (services and sales). Changes in occupational earnings have had an equalizing effect, with more substantial gains in favour of lower-skill occupations and also at the top of the skill premium. Inequality reductions since the 2000s are explained by a fall in earnings in the top percentiles of the distribution, which have been reallocated most noticeably around the median (2000–06) and the bottom 30 per cent (2006–17). Changes in the returns to education and the relocation of workers towards less-routine occupations have contributed to the inequality reduction.

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