Persistent income gaps in an occupational choice model with multi-goods
Persistent income gaps in an occupational choice model with multi-goods
复制标题
多商品职业选择模型中持续的收入差距
DOI:
10.1111/1467-8454.12137
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发表时间:
2019
影响因子:
1.9
通讯作者:
Tomoda Yasunobu
中科院分区:
文献类型:
--
作者:
Sano Koichiro;Tomoda Yasunobu
In this study, we propose a theory to explain why income gaps persist. We model a simple overlapping‐generations economy with three consumption goods and two types of workers. We find that high‐skilled workers have comparative advantage in skill‐intensive jobs and low‐skilled workers in less skill‐intensive jobs. This pattern of comparative advantage determines occupational choices by workers. Combined with human capital accumulation, the occupational choices widen income gaps between families. At the same time, the relative price of skill‐intensive goods declines owing to productivity improvement. The decline holds back income gaps from exploding. The implications of skill‐biased technological change are also examined.