Economics at your fingertips  

Capital Accumulation, Trade Liberalization, and Rising Wage Inequality: The Case of Argentina

Pablo Acosta () and Leonardo Gasparini

Economic Development and Cultural Change, 2007, vol. 55, issue 4, 793-812

Abstract: Capital accumulation can modify the relative productivity between skilled and unskilled workers, leading to changes in the wage structure. In particular, if capital goods are relatively more complementary to skilled workers, a positive correlation between investment in physical capital and the wage premium would be expected. In this article, we present evidence for this hypothesis by taking advantage of the variability in wage premia and capital investment across industries in Argentina’s manufacturing sector. We conclude that the wage premium for skilled workers increased more in those industries with higher investment in machinery and equipment. The overall evidence seems to indicate that industry affiliation is an important determinant of earnings differentials by skill group.

Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21) Track citations by RSS feed

Downloads: (external link) (text/html)
Access to the online full text or PDF requires a subscription.

Related works:
Working Paper: Capital Accumulation, Trade Liberalization and Rising Wage Inequality: The Case of Argentina (2004) Downloads
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:

DOI: 10.1086/516764

Access Statistics for this article

More articles in Economic Development and Cultural Change from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().

Page updated 2020-02-23
Handle: RePEc:ucp:ecdecc:v:55:y:2007:p:793-812