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Short- and long-run decompositions of UK wage inequality changes
journal contributionposted on 2007-03-29, 15:49 authored by Huw EdwardsHuw Edwards, John Whalley
This paper focuses on the decomposition of observed increases in UK wage inequality since 1979 into the component factors of competition from low-wage imports and technological change. Building on recent work by Abrego and Whalley, it argues that the length of production run and degree of .xity of factors is crucial in such analyses. If the response of labour markets to date is a short-run response, in which factors and output have not adjusted fully, then analysis of the causes of increased inequality is substantially altered relative to a long-run factors mobile world.
- Business and Economics
CitationEdwards, T. H. and Whalley, J., 2007. Short- and long-run decompositions of UK wage inequality changes. Bulletin of Economic Research 59 (1), pp. 1-24.
- AM (Accepted Manuscript)
NotesThis article was published in the journal, Bulletin of Economic Research [© Blackwell] and the definitive version is available at: http://www3.interscience.wiley.com/journal/118520824/abstract