Do skills matter for wage inequality?: policies to tackle wage inequality should focus on skills alongside reform of labor market institutions
Policymakers in many OECD countries are increasingly concerned about high and rising inequality. Much of the evidence (as far back as Adam Smith's 'The wealth of nations') points to the importance of skills in tackling wage inequality. Yet a recent strand of the research argues that (cognitive) skills explain little of the cross-country differences in wage inequality. Does this challenge the received wisdom on the relationship between skills and wage inequality? No, because this recent research fails to account for the fact that the price of skill (and thus wage inequality) is determined to a ... Show more
Authors: Broecke, Stijn
Published: Bonn, Germany, IZA, 2016
Resource type: Article
Physical description: 10 p.
Access item:
http://wol.iza.org/articles/do-skills-matter-for-wage-inequality/long
