EconPapers    
Economics at your fingertips  
 

Structural change and wage inequality

Jiancai Pi and Pengqing Zhang

International Review of Economics & Finance, 2018, vol. 58, issue C, 699-707

Abstract: This paper investigates how structural change driven by factor intensity differences affects the skilled-unskilled wage inequality through the three-sector general equilibrium approach. In the basic model, we find that when structural change happens in the urban skilled sector (resp. the urban unskilled sector), the wage inequality will be expanded (resp. narrowed down) if the capital-labor ratio in this sector is larger than one. In the extended models, we introduce urban unemployment and the open capital market separately into the basic model, and find that the main results of the basic model almost still hold.

Keywords: Structural change; Wage inequality; General equilibrium approach (search for similar items in EconPapers)
JEL-codes: J31 O11 O14 O25 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1059056018301801
Full text for ScienceDirect subscribers only

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:eee:reveco:v:58:y:2018:i:c:p:699-707

Access Statistics for this article

International Review of Economics & Finance is currently edited by H. Beladi and C. Chen

More articles in International Review of Economics & Finance from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-01-19
Handle: RePEc:eee:reveco:v:58:y:2018:i:c:p:699-707