Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/87265
Authors: 
Kagan, Mark
Year of Publication: 
2012
Series/Report no.: 
Tinbergen Institute Discussion Paper 12-112/VIII
Abstract: 
This paper develops a general-equilibrium model of skill-biased technological change that approximates the observed shifts in the shares of wage and non-wageincome going to the top decile of U.S. households since 1980. Under realisticassumptions, we find that all agents can benefi…t from the technology change,provided that the observed rise in redistributive transfers over this period istaken into account. We show that the increase in capital’s share of total incomeand the presence of capital-entrepreneurial skill complementarity are two keyfeatures that help support the wages of ordinary workers as the new technologydiffuses.
Subjects: 
Income Inequality
Skill-biased Technological Change
Capital-skill Complementarity
Redistribution
Welfare
JEL: 
E32
E44
H23
O33
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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