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Working Paper

Causes of Changing Earnings Inequality

Authors

  • Snower
  • D.J.

Publication Date

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

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.

Kiel Institute Expert

  • Prof. Dennis J. Snower, Ph.D.
    President Emeritus

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