Intra-country wage inequality in the OECD countries

Two reasons are mainly brought to explain the recent increase in intra-country wage inequality in favour of high-skilled labour: Skill-Biased Technological Change (SBTC) and International Trade Liberalisation (IT). Since few empirical studies have attempted to assess both interpretations...

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Main Authors: Nogueira Manuel Carlos, Afonso Óscar
Format: Article
Language:English
Published: Economists' Association of Vojvodina 2018-01-01
Series:Panoeconomicus
Subjects:
Online Access:http://www.doiserbia.nb.rs/img/doi/1452-595X/2018/1452-595X1803339N.pdf
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author Nogueira Manuel Carlos
Afonso Óscar
author_facet Nogueira Manuel Carlos
Afonso Óscar
author_sort Nogueira Manuel Carlos
collection DOAJ
description Two reasons are mainly brought to explain the recent increase in intra-country wage inequality in favour of high-skilled labour: Skill-Biased Technological Change (SBTC) and International Trade Liberalisation (IT). Since few empirical studies have attempted to assess both interpretations across a comprehensive sample of countries, we have analysed the impact of both and added some new variables within a unified framework and across 30 OECD countries, between 2001 and 2015. Using panel data, results show that both explanations are crucial. However, considering all 30 OECD countries, the IT argument dominates. Further, we show that seven clusters must be considered in which at least one theory influence the wage gap.
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spelling doaj.art-0d1bc1b36efd480784cc2eae1eb24b792022-12-22T01:06:10ZengEconomists' Association of VojvodinaPanoeconomicus1452-595X2217-23862018-01-0165333936210.2298/PAN1803339N1452-595X1803339NIntra-country wage inequality in the OECD countriesNogueira Manuel Carlos0Afonso Óscar1University of Coimbra, Faculty of Economics, Centre for Business and Economic Research (CEBER), PortugalUniversity of Porto, Faculty of Economics, Center for Economics and Finance (CEFUP, Portugal + Center for Advanced Studies in Management and Economics of the University of Beira Interior (CEFAGE-UBI), PortugalTwo reasons are mainly brought to explain the recent increase in intra-country wage inequality in favour of high-skilled labour: Skill-Biased Technological Change (SBTC) and International Trade Liberalisation (IT). Since few empirical studies have attempted to assess both interpretations across a comprehensive sample of countries, we have analysed the impact of both and added some new variables within a unified framework and across 30 OECD countries, between 2001 and 2015. Using panel data, results show that both explanations are crucial. However, considering all 30 OECD countries, the IT argument dominates. Further, we show that seven clusters must be considered in which at least one theory influence the wage gap.http://www.doiserbia.nb.rs/img/doi/1452-595X/2018/1452-595X1803339N.pdfskill-biased technological changeinternational tradeimmigrationeducationwage inequalitycluster analysis
spellingShingle Nogueira Manuel Carlos
Afonso Óscar
Intra-country wage inequality in the OECD countries
Panoeconomicus
skill-biased technological change
international trade
immigration
education
wage inequality
cluster analysis
title Intra-country wage inequality in the OECD countries
title_full Intra-country wage inequality in the OECD countries
title_fullStr Intra-country wage inequality in the OECD countries
title_full_unstemmed Intra-country wage inequality in the OECD countries
title_short Intra-country wage inequality in the OECD countries
title_sort intra country wage inequality in the oecd countries
topic skill-biased technological change
international trade
immigration
education
wage inequality
cluster analysis
url http://www.doiserbia.nb.rs/img/doi/1452-595X/2018/1452-595X1803339N.pdf
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