Market Imperfections and Wage Inequality
Sammanfattning
This paper investigates the relationship between various market imperfections and the skill premium.
The model in this paper assumes perfectly competitive labor markets but distorted product
and financial markets. The model predicts that the skill premium is positively correlated with market
power, modeled using preference for variety, and shorter product cycles. The effect from financial
market distortions or taxes on financial income is ambiguous. Positive external effects among firms
developing new goods decrease the skill premium.
Universitet
Göteborg University, School of Buisness, Economics and Law
Institution
Department of Economics
Samlingar
Fil(er)
Datum
2007-09-10Författare
Sandén, Klas
Nyckelord
Wage Inequality
Monopolistic Competition
Innovation
JEL: D33, D43, D50, D91, D92, J31, L13, O31
Publikationstyp
report
ISSN
1403-2465
Serie/rapportnr.
Working Papers in Economics
264
Språk
eng