Technological Change and Wage Differentials Results and Policy Implications From a Dynamic Intertemporal General Equilibrium Model.

Abstract

The effect of technological change on wage differentials between skilled and unskilled labour has been extensively investigated. However, the existing literature provides controversial results. This paper provides insights into the relationship between technological change and wage differentials by constructing a DIGE models of a closed economy. This model suggests a range of policy implications.TECHNOLOGICAL CHANGE ; WAGES ; LABOUR