Explains on wages inequality

Question 1

SBTC means ?

Answer 1

Skill biased technological change : increased demand for higher educated workers with it

Question 2

The Tinbergen (1975) theory is :

Answer 2

the demand for higher educated workers increases because of the apparition of news technologies and globalisation : and the supply is unable, so the wages increase

Question 3

Elasticity of substitution :

Answer 3

It’s the percent change int he Lh/Lb ratio relative to the increase of 1 percent in the wh /wb ratio

Question 4

Wage inequality is also explained by…

Answer 4

Globalisation : Helker et Odlin model 1991 : Countries with higher level of capital and labor : inequality increases
In developping countries : inequality decreases
Leamer 2007 : the middle of the distribution is left out

Question 5

Lazearn and Rosen (1981)

Answer 5

The super star effect : the revenus of the highest talent is much higher than the talent below
Litterature says that the increase of the number of markets have developped features of the super star effect.