Trade, Skill Biased Technical Change and Wage Inequality in South Africa

2013 ◽  
Vol 21 (3) ◽  
pp. 419-431 ◽  
Author(s):  
Jørn Rattsø ◽  
Hildegunn E. Stokke
Keyword(s):  
South Africa ◽  
Wage Inequality ◽  
Technical Change

Industry Concentration and Wage Inequality: a Directed Technical Change Approach

2018 ◽  
Vol 30 (3) ◽  
pp. 457-481 ◽  
Author(s):  
Manuela Magalhães ◽  
Tiago Sequeira ◽  
Óscar Afonso
Keyword(s):  
Wage Inequality ◽  
Technical Change ◽  
Industry Concentration ◽  
Directed Technical Change

scholarly journals Why Has Urban Inequality Increased?

2018 ◽  
Vol 10 (4) ◽  
pp. 1-42 ◽  
Author(s):  
Nathaniel Baum-Snow ◽  
Matthew Freedman ◽  
Ronni Pavan
Keyword(s):  
Production Function ◽  
Wage Inequality ◽  
Strong Evidence ◽  
Technical Change ◽  
Agglomeration Economies ◽  
Unskilled Labor ◽  
Skill Bias ◽  
Urban Inequality

This paper examines mechanisms driving the more rapid increases in wage inequality in larger cities between 1980 and 2007. Production function estimates indicate strong evidence of capital–skill complementarity and increases in the skill bias of agglomeration economies in the context of rapid skill-biased technical change. Immigration shocks are the source of identifying variation across cities in changes to the relative supply of skilled versus unskilled labor. Estimates indicate that changes in the factor biases of agglomeration economies rationalize at least 80 percent of the more rapid increases in wage inequality in larger cities. (JEL J24, J31, O33, R23)

scholarly journals Sources of output growth in the countries of the Common Monetary Area and provinces of South Africa

2021 ◽  
Author(s):  
Dukhabandhu Sahoo ◽  
Auro Kumar Sahoo ◽  
Jayanti Behera ◽  
Diptimayee Mishra ◽  
Phendulwa Zikhona Makunga
Keyword(s):  
South Africa ◽  
Gross Domestic Product ◽  
Technical Efficiency ◽  
Technical Change ◽  
Technological Progress ◽  
Output Growth ◽  
Domestic Product ◽  
Policy Makers ◽  
Secondary Sector ◽  
The Common

This paper aims to decompose the sources of growth in economies in the Southern African region’s Common Monetary Area and in the provinces of South Africa. Decomposition results for the Common Monetary Area reveal that the growth of aggregate and sectoral gross domestic product is driven by input, without increasing efficiency in production or benefiting from technological progress, which is unsustainable. Negative technical change implies that countries are unable to reap the benefits from shifts in technology. Countries experiencing input-driven growth in the secondary sector, such as Namibia and Eswatini, have the potential to achieve growth through efficiency improvements and by adopting technology. Output growth in the provinces of South Africa is negatively contributed by changes in technical efficiency, which suggests that policy makers should raise growth further by emphasizing improvements in efficiency in these provinces.

scholarly journals Technical Change, Wage Inequality, and Taxes

2015 ◽  
Vol 105 (10) ◽  
pp. 3061-3101 ◽  
Author(s):  
Laurence Ales ◽  
Musab Kurnaz ◽  
Christopher Sleet
Keyword(s):  
Labor Market ◽  
Income Distribution ◽  
Wage Inequality ◽  
Technical Change ◽  
Optimal Policy ◽  
Policy Design ◽  
Income Taxes ◽  
Policy Response ◽  
Assignment Model ◽  
Optimal Tax

This paper considers the normative implications of technical change for tax policy design. A task-to-talent assignment model of the labor market is embedded into an optimal tax problem. Technical change modifies equilibrium wage growth across talents and the substitutability of talents across tasks. The overall optimal policy response is to reduce marginal income taxes on low to middle incomes, while raising those on middle to high incomes. The reform favors those in the middle of the income distribution, reducing their average taxes while lowering transfers to those at the bottom. (JEL D31, H21, H23, H24, J31, O33)

scholarly journals The Assignment of Workers to Tasks, Wage Distribution, and Technical Change: A Critical Review

2008 ◽  
pp. 12
Author(s):  
Arnaud Dupuy
Keyword(s):  
Production Function ◽  
Wage Inequality ◽  
Technical Change ◽  
Critical Review ◽  
Wage Structure ◽  
Wage Distribution ◽  
Wage Distributions ◽  
General Equilibrium Effect ◽  
Assignment Models ◽  
Equilibrium Effect

This article reviews the literature on two-sided atomless assignment models of workers to tasks. Using simple parametric examples, the fundamental differences between the comparative-advantage and the scale-of-operations models are illustrated. Holding the distributions of abilities and tasks and the production function of worker-task pairs constant, the two principles are shown to produce different wage distributions and wage inequality. These models are useful to evaluate the general equilibrium effect of technical change on the wage structure. In all models, Skill Biased Technical Change that impacts the production function of worker-task pairs leads to rising wage inequality.

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