Small Firms, Contracting-out, Computers and Wage Inequality: Evidence from UK Manufacturing

Jonathan Haskel ()

No 1490, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: What demand-side and institutional factors raised the skilled wage premium over the 1980s in UK manufacturing? Using a panel of 80 industries for 1980–89 we find that: (i) the average skill premium rose by around 13 percentage points; (ii) computer introduction explains around 50% of this rise; (iii) growth in small firms and in contracting-out together explain around 20%; and (iv) the fall in unionisation explains around 15%.

Keywords: Computers; Skill Premia; Small Firms; UK; Wage Inequality (search for similar items in EconPapers)
JEL-codes: J31 (search for similar items in EconPapers)
Date: 1996-10
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Citations: View citations in EconPapers (9)

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