 Wage Growth and Wage InequalityChapter 6 in Economic Dynamism, Openness, and Inclusion:How Singapore Can Make the Transition from an Era of Catch-up Growth to Life in a Mature Economy, 2018, pp 91-98 from World Scientific Publishing Co. Pte. Ltd. Abstract: A feature of Singapore’s growth experience is that the wage share has been relatively constant. Given this, the steady increase in the real GDP per worker since independence has been accompanied by real wage growth. In the absence of technological progress and the opportunity for international trade, a steady increase in the capital-labour ratio leads to real wage growth. Nevertheless, as capital accumulation faces diminishing returns, the real wage growth peters out in the absence of technological progress and trading opportunities. However, Singapore has, indeed, been vitally integrated into the global economy in its economic development. As a result, the economy has moved up the ladder of comparative advantage even as the capital-labour ratio increased both as a result of domestic investment as well as foreign direct investment. In addition, as Singapore moved towards the technological frontier, the closing of the technology gap has also meant that, at given capital-labour ratio, the real wage has been pulled up… Keywords: Singapore Economy; Catch-up Growth; Mature Economy; Standard of Living; Jobs; Business; Economic Model (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:wsi:wschap:9789813236233_0006 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd. |
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