Explaining UK wage inequality in the past globalisation period, 1880–1913

C. Betrán (), Javier Ferri and Maria A. Pons ()
Additional contact information
C. Betrán: Facultad de Economía, Universidad de Valencia, 46022 Valencia, Spain.
Maria A. Pons: Facultad de Economía, Universidad de Valencia, 46022 Valencia, Spain.

Cliometrica, Journal of Historical Economics and Econometric History, 2010, vol. 4, issue 1, 19-50

Abstract: The current era of globalisation has witnessed a rising premium paid to skilled workers resulting in increasing wage inequality in most OECD countries. This pattern differs from that observed during the past globalisation period (1880–1913), in which wage inequality decreased in most of the Old World countries. The present debate over wage inequality focuses on the implications of globalisation, technological change, the role of labour market institutions and education. Similar factors were at work in the past globalisation process. In order to disentangle the main factors that contribute to wage inequality, we calibrate a general equilibrium model for the UK economy in the past globalisation period. The results show that a trade shock and a skilled-biased technology shock increased wage inequality. However, education and emigration had a more significant impact and led to a decrease in wage inequality.

Keywords: Wage inequality; Globalisation; Technological change; General equilibrium (search for similar items in EconPapers)
JEL-codes: C68 J31 N30 (search for similar items in EconPapers)
Date: 2010
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://dx.doi.org/10.1007/s11698-009-0038-z (text/html)
Access to full text is restricted to journal subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:afc:cliome:v:4:y:2010:i:1:p:19-50

Access Statistics for this article

Cliometrica, Journal of Historical Economics and Econometric History is currently edited by Claude Diebolt, Dora Costa and Jean-Luc Demeulemeester

More articles in Cliometrica, Journal of Historical Economics and Econometric History from Association Française de Cliométrie (AFC) Contact information at EDIRC.
Bibliographic data for series maintained by ().