Technological Change, Labour Demand and Income Distribution in European Union Countries

Cristiano Perugini and Fabrizio Pompei

No 56/2008, Quaderni del Dipartimento di Economia, Finanza e Statistica from Università di Perugia, Dipartimento Economia

Abstract: This paper provides empirical evidence of the link between technological change in different technology intensive sectors and overall income (and not simply earnings) inequality in some EU eastern and western countries. In a first step, skill-biased technological change hypothesis is tested distinguishing various technology intensive sectors: results confirm the presence of skill-complementary technologies but also stress the skill-replacing character of other ones incorporated into investment flows. The second step places the evolutions of sector skilled-labour demand among other traditional determinants of income inequality. Findings reveal significant and composite impacts of skilled-labour demand, strongly depending on sectoral differences in technological intensity.

Keywords: FDI; technological change; skills; income distribution (search for similar items in EconPapers)
JEL-codes: D31 J24 O15 O33 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2008-04-23
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Citations: View citations in EconPapers (6)

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