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U.S. Wage Inequality, Technological Change, and Decline in Union Power

James S. Mosher
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James S. Mosher: Ohio University

Politics & Society, 2007, vol. 35, issue 2, 225-263

Abstract: Wage inequality, including the college/high school education premium, has increased substantially in the United States. A key part of the most widely accepted explanation for this is that skill-biased technological change accelerated during this time. This article suggests that the impact of skill-biased technological change was closer to constant in the second half of the twentieth century. This leaves a large unexplained decrease in the college/high school education premium in the 1940s and a large unexplained increase in the 1980s. The current article provides evidence that the upsurge and decline in union power during those respective periods provide a good explanation for these unexplained wage inequality changes.

Keywords: inequality; unions; technological change; skill bias; social democracy (search for similar items in EconPapers)
Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:sae:polsoc:v:35:y:2007:i:2:p:225-263

DOI: 10.1177/0032329207300394

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