Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/89264
Authors: 
Gambardella, Alfonso
Ulph, David
Year of Publication: 
2003
Series/Report no.: 
LEM Working Paper Series 2002/06
Abstract: 
This paper links the rise of new industries populated by skill-intensive companies, and the divergence in labour incomes between skills. Our model explains inequality by the fact that as the skilled workers move towards new Silicon-Valley type firms, the reduced complementarity between skilled and unskilled workers in the traditional manufacturing sectors lessens the productivity of the latter. In addition, knowledge externalities in the modern sector produce two equilibria in which either the modern sector dominates (and inequality between skills is high), or manufacturing dominates (inequality is low). We provide suggestive evidence consistent with our model.
Subjects: 
technology
entrepreneurship
wage inequality
JEL: 
J32
L22
Document Type: 
Working Paper

Files in This Item:
File
Size
265.79 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.