Industry Concentration and Wage Inequality: a Directed Technical Change Approach

• Type: Article in International Scientific Journal
• Date: 2019

Authors

Óscar Afonso (Author) FEP; Manuela Magalhães (Author) Other; Tiago Sequeira (Author) Other

Journal

Title: Open Economies Review

Vol. 30

Pages: 457-481

ISSN: 0923-7992

Publisher: Springer Nature

Indexing

ISI Web of Knowledge - 2 Citations

ISI Web of Science

Scopus - 1 Citation

Econlit

Scientific classification

CORDIS: Social sciences > Economics

FOS: Social sciences > Economics and Business

Other information

Authenticus ID: P-00P-QTG

DOI: 10.1007/s11079-018-9513-0

Abstract (EN): Despite several theoretical approaches linking rising market power to more income inequality, a theoretical-based empirical quantification of this relationship has not been made. We devised a directed technical change model and characterize this relationship. To test our model, we calculate concentration indexes and relate them with skill-premium using industry data per country for 40 countries from 1995 to 2011. In general, we show a negative and robust relationship between the market power index and wage inequality. Additional evidence shows that results tend to be different for countries with different income levels and for different initial values of skill-premium and market power.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 25