Product Variety and Wage Inequality

Jiancai Pi and Xiangyu Huang ()
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Xiangyu Huang: Department of Economics, Nanjing University

Annals of Economics and Finance, 2021, vol. 22, issue 1, 135-151

Abstract: This paper analyzes how product variety affects skilled-unskilled wage inequality. Through building several two-sector general equilibrium models, we find that an increase in product variety will expand wage inequality. This shows that the evolution of the product markets will generate a force to enlarge wage inequality.

Keywords: Product variety; Skilled-unskilled wage inequality; General equilibrium model (search for similar items in EconPapers)
JEL-codes: J31 L20 O15 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:cuf:journl:y:2021:v:22:i:1:pihuang

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