Technological Complexity, Wage Differentials and Unemployment

Technological Complexity, Wage Differentials and Unemployment

A model is developed to analyse the relation between wages and technological complexity, as characterised by the "O-ring" theory of production. In equilibrium, the adoption of a relatively complex technology induces the employer to pay higher wages. We argue that the model can explain incr...

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Veröffentlicht in:The Scandinavian journal of economics 2002-12, Vol.104 (4), p.515-530
1. Verfasser: Dalmazzo, Alberto
Format: Artikel
Sprache:eng
Schlagworte:
Computer technology
Economic models
Economic theory
Economics
Empirical evidence
Income inequality
Inequality
Modeling
O ring seals
Productivity
Studies
Technological change
Technological complexity
Technology
Unemployment
Unemployment rates
Wage differential
Wage differentials
Wages
Wages & salaries
within-group wage dispersion
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Beschreibung
Zusammenfassung:A model is developed to analyse the relation between wages and technological complexity, as characterised by the "O-ring" theory of production. In equilibrium, the adoption of a relatively complex technology induces the employer to pay higher wages. We argue that the model can explain increased within-group wage inequality as a consequence of increased technological heterogeneity among firms.
ISSN:0347-0520
1467-9442
1467-9442
DOI:10.1111/1467-9442.00299