Technological Complexity, Wage Differentials and Unemployment |
| |
Authors: | Alberto Dalmazzo |
| |
Affiliation: | Universita di Siena, Siena, Italy |
| |
Abstract: | A model is developed to analyse the relation between wages and technological complexity, as characterised by the "O–ring" theory of production. In equilibrium, the adoption of a relatively complex technology induces the employer to pay higher wages. We argue that the model can explain increased within–group wage inequality as a consequence of increased technological heterogeneity among firms. JEL classification : J 31; O 33 |
| |
Keywords: | Technological complexity within–group wage dispersion unemployment |
|
|