Working Paper

Causes of Changing Earnings Inequality


  • Snower
  • D.J.
Publication Date

This paper surveys major empirical regularities concerning changes in earnings inequality in Europe and the U.S. over the past 25 years. Next, it indicates which of these regularities can be explained within the competitive demand-supply framework of analysis and what is left unexplained. Finally, it considers the implications of organizational change as a possible rationale for recent inequality developments.

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JEL Classification
D31, D33, D23, D24, D63

Key Words

  • Bildung
  • change
  • earnings
  • Education
  • Globalisierung
  • globalization
  • income distribution
  • inequality
  • labor supply
  • Mindestlohn
  • Minimum wage
  • organizational
  • skilled and
  • technological change
  • Technologischer Wandel
  • Ungleichheit
  • unionization
  • unskilled workers
  • wage rigidities