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Published in:
2013 | OriginalPaper | Chapter
Growing Income Inequalities in Advanced Countries
Authors : Nathalie Chusseau, Michel Dumont
Published in: Growing Income Inequalities
Publisher: Palgrave Macmillan UK
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Since the early eighties, advanced countries have experienced an increase in wage inequalities between skilled and unskilled workers. The economic literature has proposed several explanations for this increase. This can be implemented from a Demand-Supply-Institution framework (Katz and Autor, 1999; Acemoglu, 1998, 2005). Considering the markets for skilled and unskilled labour, any factor that modifies the demands for and supplies of skilled and unskilled workers indeed affects the skill premium (ratio of the wage of skilled on the wage of unskilled workers), and thus the inequality between skilled and unskilled workers. Supply-side factors such as education, training, skill obsolescence, migration and demand-side factors have been analysed and estimated in an abundant literature.