In this paper, we develop a model of innovation-based growth to address the issue of skill-biased technical change over the long run. We show that innovations fluctuate endogenously from skilled to unskilled sectors, thereby generating periods of increasing and decreasing wage inequality. This...

This report looks at the effects on the distribution of household income of those government-provided services that confer a personal benefit to users. While most of the comparative evidence of the size and evolution of income inequalities in OECD countries relies on the concept of household...

Conventional income distribution statistics subtract taxes from household income but do not take into account the distributional effects of the services financed through these taxes. As many of the functions of government are available to the population free of charge or at a subsidised rate,...