Title: Technological Complexity, Wage Differentials and Unemployment
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
Publication Year: 2002
Publication Date: 2002-12-01
Language: en
Type: article
Indexed In: ['crossref']
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Cited By Count: 19
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