Skill-Biased Technological Change and Gender Inequality across OECD Countries—A Simultaneous Approach

Manuel Carlos Nogueira () and Mara Madaleno
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Manuel Carlos Nogueira: ISPGAYA-Higher Polytechnic Institute of Gaya, Avenida dos Descobrimentos, 303, Santa Marinha, 4400-103 Vila Nova de Gaia, Portugal
Mara Madaleno: GOVCOPP–Research Unit in Governance, Competitiveness and Public Policy, Department of Economics, Management, Industrial Engineering and Tourism (DEGEIT), University of Aveiro, 3810-193 Aveiro, Portugal

Economies, 2023, vol. 11, issue 4, 1-18

Abstract: Of the various approaches that, over the last few decades, have sought explanations for the constant increase in the wage gap between more and less skilled workers, the Skill-Biased Technological Change (SBTC) approach has been the most used and the one that has led to the most consistent results. The objective of this study is to assess whether the possible mobility between different types of workers, considering their experience and professional training, and this way, replacing more skilled workers in terms of education widens or reduces the wage gap between qualifications. For this purpose, we resorted to the modeling of simultaneous equations taking into account the OECD countries between 2007 and 2020, concluding that there is a strong influence of the wage gaps of the less qualified in the widening of the gaps of the more qualified and that this influence is more significant in the case of women. Education continues to promote the increase in wage differences in favor of the most qualified, as well as the SBTC approach. We also conclude that women’s wage gaps are approaching the average of most workers, thus reducing wage inequality between genders.

Keywords: skill-biased technological change; gender wage inequality; education; simultaneous equations (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2023
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