Insecure resources, rent seeking, and wage inequality

Jiancai Pi and Yanwei Fan

International Review of Economics & Finance, 2019, vol. 61, issue C, 260-269

Abstract: This paper explores how insecure resources affect skilled-unskilled wage inequality in the background of rent seeking. Through building the general equilibrium models embedded with contest success functions, we find that wage inequality is determined by the output elasticities of rent-seeking efforts and the capital intensities of different sectors, and that sometimes the threshold of insecure resources also plays an important role.

Keywords: Insecure resources; Wage inequality; Rent-seeking; Contest success function (search for similar items in EconPapers)
JEL-codes: D33 D74 J31 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:61:y:2019:i:c:p:260-269

DOI: 10.1016/j.iref.2019.02.010

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