GROWTH AND WAGE INEQUALITY IN A SCALE-INDEPENDENT MODEL WITH R&D AND HUMAN-CAPITAL ACCUMULATION
We present a dynamic, non-scale general equilibrium model with two human-capital types where Schumpeterian R&D and human-capital accumulation are the engines of growth and wage inequality. In particular, wage inequality is encouraged by relative changes in supply and demand of both human-capital types. Relative supply restricts employed human-capital levels. Relative demand is instantly affected by a new general-purpose technology and, as in the skill-biased technological change literature, by technological-knowledge bias. By considering substitutability between technologies and complementarity between inputs, the bias is driven by the price channel (not by the market-size channel) and is affected by human-capital accumulation. Copyright © 2010 The Author. Journal compilation © 2010 Blackwell Publishing Ltd and The University of Manchester.
Year of publication: |
2010
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Authors: | AFONSO, OSCAR |
Published in: |
Manchester School. - School of Economics, ISSN 1463-6786. - Vol. 78.2010, 2, p. 149-182
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Publisher: |
School of Economics |
Saved in:
freely available
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