Wage Inequality and Innovative Intelligence-Biased Technological Change

Taiji Harashima

MPRA Paper from University Library of Munich, Germany

Abstract: In this paper, “innovative intelligence–biased technological change” (IIBTC) is examined as an alternative to the traditional concept of skill-biased technological change (SBTC) as a source of increases in wage inequality. The innovative intelligence of ordinary or average workers is an important element in productivity and can be heterogeneous across workers. Because technologies are heterogeneous in that they have different characteristics and are used in different situations, some technologies are “innovative intelligence-biased” and are advantageous for workers with relatively high innovative intelligence. If IIBTC prevails over a certain period of time, these workers become additionally advantaged and thereby wage inequality will increase during the period.

Keywords: Wage inequality; Innovative intelligence; Technological change; Total factor productivity; Approximate effective production function (search for similar items in EconPapers)
JEL-codes: D24 D63 J31 (search for similar items in EconPapers)
Date: 2017-11-02
New Economics Papers: this item is included in nep-eff and nep-ino
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Related works:
Journal Article: WAGE INEQUALITY AND INNOVATIVE INTELLIGENCE-BIASED TECHNOLOGICAL CHANGE (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:82337

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