Intermediate Products, Specialization and the Dynamics of Wage Inequality in the US

Anton Tchipev

Quaderni della facoltà di Scienze economiche dell'Università di Lugano from USI Università della Svizzera italiana

Abstract: This paper attempts to reconcile the slowdown in wage inequality in the 1990s with the view that international trade was a major factor contributing to the sharp increases in inequality during the 1980s. I present a model that highlights the importance of intermediate products and attributes the trend reversal of inequality to the restructuring of the economy. The model is supported by evidence on the evolution of the imports of intermediate products.

Keywords: wage inequality; intermediate products; outsourcing (search for similar items in EconPapers)
JEL-codes: F16 J31 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2006-12
New Economics Papers: this item is included in nep-int and nep-lab
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Persistent link: https://EconPapers.repec.org/RePEc:lug:wpaper:0608

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