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Author:Dalmazzo, A.
Pekkarinen, T.
Scaramozzinos, P.
Title:O-ring wage inequality
Journal:Economica
2007 : AUG, VOL. 74:295, p. 515-536
Index terms:complexity
inequality
pay
Language:eng
Abstract:This article examines the relationship between technological complexity and wage inequality, using an efficiency wage model that adopts Kremer's O-ring production functions. This models two main implications are when the production processes becomes more complex, within-task wag differences increase between plants and between-task wage differences increase within plants. The results show that wages increase in all the tasks with the complexity of the production process and the relationship between the complexity of the tasks and wages is steepest in the firms with more complex production processes.
SCIMA record nr: 265135
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