Small Firms, Contracting‐out, Computers and Wage Inequality: Evidence from UK Manufacturing | Zendy

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Small Firms, Contracting‐out, Computers and Wage Inequality: Evidence from UK Manufacturing

Author(s) -

Heskel Jonathan

Publication year - 1999

Publication title -

economica

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 1.532

H-Index - 65

eISSN - 1468-0335

pISSN - 0013-0427

DOI - 10.1111/1468-0335.00153

Subject(s) - wage inequality , labour economics , economics , wage , panel data , wage growth , inequality , manufacturing , percentage point , business , finance , econometrics , marketing , mathematical analysis , mathematics

What demand‐side and institutional factors raised the skilled wage premium over the 1980s in UK manufacturing? Using a panel of 80 industries over 1980–9, we find that (1) the average skill premium rose by around 13 percentage points; (2) computer introduction explains around 50% of thisrise; (3) the growth in small firms and in contracting‐out together explain around 20% of the rise; and (4) the fall in unionization explains around 15% of the rise.

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