Learning-by-doing, technology-adoption costs and wage inequality

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

Authors

Óscar Afonso (Author) FEP; Rui Manuel Lousada Leite (Author) FEP

Journal

Title: Economic Modelling

Vol. 27 No. 5

Pages: 1069-1078

ISSN: 0264-9993

Publisher: Elsevier

Indexing

ISI Web of Knowledge - 7 Citations

ISI Web of Science

Scopus - 8 Citations

Econlit

Scientific classification

FOS: Social sciences > Economics and Business

Other information

Authenticus ID: P-003-37T

DOI: 10.1016/j.econmod.2010.04.002

Abstract (EN): In the dominant literature, the technological-knowledge bias that drives wage inequality is determined by the market-size channel. We develop an endogenous growth model with two technologies in which: a specific quality of labour, low or high-skilled, is combined with a specific set of quality-adjusted intermediate goods; the market-size channel is practically removed; adoption costs and learning-by-doing are linked with labour endowments. By solving transitional dynamics numerically, we show that changes in the supply of labour affect learning-by-doing and technology-adoption costs, which, in turn, influence the technological-knowledge bias and thus wage inequality. The proposed mechanisms can accommodate facts not explained by the previous literature.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 10