In our general equilibrium model, the variety of specialized service links affects international production fragmentation in manufacturing. Decreases in cost of education or fixed cost of service links raise the relative supply of skilled workers, increase service specialization, and decrease the price of aggregate services. Consequently, the market for serviceand skill-intensive component manu...

The minimum wage has gained momentum among policymakers as a way to alleviate rising wage and income inequality. Much of the debate over this policy centers on whether raising the minimum wage causes job loss, as well as the potential magnitude of those losses. Recent research shows conflicting evidence on both sides of the issue. In general, the evidence suggests that it is appropriate to weig...

Residual Wage Inequality in Urban China, 1995-2007 We use three waves of urban household survey data from 1995 to 2007 to investigate the trends of residual inequality and its determinants. First, we describe the change of overall and residual wage inequality over time. One important new pattern is that the rise in both the overall and residual inequality mainly happened at the upper half of th...

In recent years a “unified theory” has emerged out of labor economics, which argues that a combination of “macroeconomic shocks” and flexible labor market institutions in the U.S. has produced strong upward trends in wage inequality, while these same shocks have produced high unemployment and low employment growth in Europe as a side effect of the wage stability preserved by that continent’s ri...

This paper examines whether Taiwan’s economic inequality has worsened as Taiwan has evolved into an information economy, a transformation which began around 1980. The paper explores this relationship by investigating three specific research questions. First, has there been a rise in wage inequality in Taiwan since 1980; and if so, what are the sources of this rise in inequality? Second, has the...

This paper proposes a microeconomic decomposition of the evolution of income inequality in Côte d’Ivoire in the 1990s, allowing the in-depth analysis of simultaneous contributions of four types of phenomena to the evolution of the distribution of income: a change in the remuneration rates of observed and unobserved earnings determinants, a change in occupational preferences, and a change in the...

Demand for Redistribution, Support for the Welfare State, and Party Identification in Austria This paper describes subjective wage inequality and the demand for redistribution in Austria using individuals' estimates of occupational wages from the International Social Survey Program. Although these estimates differ widely across individuals, the data clearly show that most individuals would like...

In the context of rising inequality between capital and labour among wage-earners in Europe, this state-of-the-art article reviews literature concerning relationship collective bargaining inequality. It focuses on two main questions: (i) what is bargaining, union power labour? (ii) wage wage-earners? Both questions are discussed general terms for single- multi-employer systems. argued that cove...