Ability Biased Technological Transition, Wage Inequality and Growth

@inproceedings{Galor2000AbilityBT,
  title={Ability Biased Technological Transition, Wage Inequality and Growth},
  author={Oded Galor and Omer Moav},
  year={2000}
}
This paper develops a growth model in which the endogenous evolution of technological progress and wage inequality is consistent with the observed pattern in the United States and several European economies in the last two centuries. The model accounts for: a) the rise in wage inequality between and within groups of skilled and unskilled workers, the increase in the average wage of skilled workers despite the increase in supply, and the decline in the average wage of unskilled workers, as… CONTINUE READING

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