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 |
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| container_title | The Scandinavian journal of economics |
| container_volume | 104 |
| creator | Dalmazzo, Alberto |
| description | 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. |
| doi_str_mv | 10.1111/1467-9442.00299 |
| format | Article |
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| identifier | ISSN: 0347-0520 |
| ispartof | The Scandinavian journal of economics, 2002-12, Vol.104 (4), p.515-530 |
| issn | 0347-0520 1467-9442 1467-9442 |
| language | eng |
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| source | RePEc; EBSCOhost Business Source Complete; JSTOR Archive Collection A-Z Listing; Wiley Online Library All Journals |
| subjects | 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 |
| title | Technological Complexity, Wage Differentials and Unemployment |
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