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The Changing Distribution of Earnings in OECD Countries$
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A.B. Atkinson

Print publication date: 2008

Print ISBN-13: 9780199532438

Published to Oxford Scholarship Online: September 2008

DOI: 10.1093/acprof:oso/9780199532438.001.0001

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The Race between Technology and Education: The Textbook Model

The Race between Technology and Education: The Textbook Model

Chapter:
(p.7) 2 The Race between Technology and Education: The Textbook Model
Source:
The Changing Distribution of Earnings in OECD Countries
Author(s):

A. B. Atkinson (Contributor Webpage)

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199532438.003.0003

This chapter uses the textbook model of supply and demand of labour to discuss the race between technology and education and its impact on wages. It is shown that with a specified set of dynamics, the skill wage premium converges to a constant value even where demand is continuing to shift. The extent of the rise depends however on the working of the labour market. Countries that respond more quickly to the need for more educated workers will see a smaller rise in the wage premium.

Keywords:   labour supply, skilled labour, unskilled labour, demand, wages, earnings distribution

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