GROWTH AND WAGE INEQUALITY IN A SCALE-INDEPENDENT MODEL WITH R&D AND HUMAN-CAPITAL ACCUMULATION

• Type: Article in International Scientific Journal
• Date: 2010

Authors

Óscar Afonso (Author) FEP

Journal

Title: Manchester School

Vol. 78 No. 2

Pages: 149-182

ISSN: 1463-6786

Publisher: Wiley-Blackwell

Indexing

ISI Web of Knowledge - 2 Citations

ISI Web of Science

Scopus - 2 Citations

Econlit

Scientific classification

FOS: Social sciences > Economics and Business

Other information

Authenticus ID: P-003-8WQ

DOI: 10.1111/j.1467-9957.2009.02135.x

Abstract (EN): We present a dynamic, non-scale general equilibrium model with two human-capital types where Schumpeterian R&D and human-capital accumulation are the engines of growth and wage inequality. In particular, wage inequality is encouraged by relative changes in supply and demand of both human-capital types. Relative supply restricts employed human-capital levels. Relative demand is instantly affected by a new general-purpose technology and, as in the skill-biased technological change literature, by technological-knowledge bias. By considering substitutability between technologies and complementarity between inputs, the bias is driven by the price channel (not by the market-size channel) and is affected by human-capital accumulation.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 34