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In recent decades, most developed countries have experienced a simultaneous increase in income inequality and management compensation. In this paper, we study the relation between management compensation and firm-level income dynamics in a general equilibrium model. Empirical estimation, of the...
Persistent link: https://www.econbiz.de/10003754931
dispersion, and 2) the correlation between within-firm skill dispersion and productivity is positive in industries with higher …
Persistent link: https://www.econbiz.de/10012024633
How will the emergence of ChatGPT and other forms of artificial intelligence (AI) affect the skill premium? To address this question, we propose a nested constant elasticity of substitution production function that distinguishes among three types of capital: traditional physical capital...
Persistent link: https://www.econbiz.de/10014529725
rapidly raising productivity while making workers redundant. This paper explores the evidence for this view among the IT …-using U.S. manufacturing industries. There is some limited support for more rapid productivity growth in IT … expectations, is that output contracts in IT-intensive industries relative to the rest of manufacturing. Productivity increases …
Persistent link: https://www.econbiz.de/10010236437
productivity. Further, when our model is subjected to skill-upgrading and changes in employee bargaining power, it is capable of … employees’ relative productivity, i.e., skill-biased technological change, are unlikely to have caused the increase in income …
Persistent link: https://www.econbiz.de/10003941761
increases in both upper- and lower-tail inequality. A shortage of skills combined with skill-biased technological changes are at …
Persistent link: https://www.econbiz.de/10003923561
technological advancements on overall employment, skills and wages. After a critical review of the extant literature and the …
Persistent link: https://www.econbiz.de/10014286647
knowledge sector is bounded, as productivity increases, the economy moves from a "Solovian zone" where wages increase with … productivity, to a "Marxian" zone where the paradoxically decline with productivity. This is because as consumption of a given good … more unevenly distributed then productivity, technical progress always increases inequality. Redistribution from profits to …
Persistent link: https://www.econbiz.de/10011401020
How do firms respond to technological advances that facilitate the automation of tasks? Which tasks will they automate, and what types of worker will be replaced as a result? We present a model that distinguishes between a task's engineering complexity and its training requirements. When two...
Persistent link: https://www.econbiz.de/10010478513
. It explicitly addresses the question of what workers newly experience in the richer economy (higher productivity), what … encompasses the constraints placed on workers in terms of the human capital skills demanded. The findings show that income … accounting literature, productivity differences in favor of the richer economy, due to differences in TFP and in physical capital …
Persistent link: https://www.econbiz.de/10012201391