Risk, Occupational Choice, and Inequality

Författare: Klas Sandén; Göteborgs Universitet.; Göteborg University.; [2003]

Nyckelord: SAMHÄLLSVETENSKAP; SOCIAL SCIENCES; Distribution; Wages; Cooperatives; Technological Change and Economic Growth;

Sammanfattning: This paper presents a new theory explaining increased wage inequality by augmenting a general equilibrium model with occupational choice and risk. By combining an endogenous growth model with occupational choice it is shown that wage inequality, measured by the average wage of high skilled workers divided by the average wage of low skilled workers, can increase or decrease due to an increased supply of high skilled workers.

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