The aim of this paper is to determine how wage inequality is likely to be affected by the current COVID-19 pandemic. I first estimate the impact that social distancing will have on US state-level employment using pre-crisis industry data. I then consider the joint impact of states' unemployment...

We study how advances in labor-substituting (automation) technologies affect production networks. Labor-substituting advances lower the wages of substitutable workers relative to non-substitutable workers, affecting employment in the entire economy, well beyond the production chains adopting the...

I propose a two-sector endogenous growth model with heterogeneous sectoral productivity and sector-specific, nonlinear hiring costs to analyse the link between sectoral resource allocation, low productivity growth and stagnant real wages. My results suggest that an upward shift in the labor...

In his paper ‘‘Looking Back, Looking Ahead: Biased Technological Change, Substitution and the Wage Gap'' Theo van de Klundert employs a two-goods, two-factors general equilibrium model, applying the powerful "hat calculus technique" introduced by Meade (1961), to study the determinants of...