Structural change and wage inequality in the manufacturing sector: long run evidence from East Asia

Bruno Martorano () and Marco Sanfilippo

Working Papers - Economics from Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa

Abstract: This paper analyses the long run determinants of wage inequality in the manufacturing sector for a group of East Asian countries that have experienced rapid structural transformations over the last decades. In line with the Skill Biased Technological Change hypothesis, our results show that within manufacturing structural change –fostering the participation of higher skilled workers – is a strong determinant of the wage premium. However, the paper highlights also the peculiarity of the East Asian model, which shows how well-designed education policies, a prudent macroeconomic management and selective policies towards foreign capital can contribute to buffer the pressure of structural change on wage inequality, even in an open economy context.

Keywords: Structural change; Wage Inequality; East Asia (search for similar items in EconPapers)
JEL-codes: E24 L16 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2014
New Economics Papers: this item is included in nep-lab and nep-mac
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Journal Article: Structural Change and Wage Inequality in the Manufacturing Sector: Long Run Evidence from East Asia (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:frz:wpaper:wp2014_09.rdf

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