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Labour Market Implications of a Compressed Wage Structure when Education and Training are Endogenous

Malchow-Møller, Nikolaj; Skaksen, Jan Rose (København, 2003)

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Abstract:

We consider the economic implications of a compressed wage structure which is exogenously determined by institutions. An important feature of our analysis is that human capital is endogenous and can be achieved either as formal education or as informal training within firms after entering the labour market. While institutional wage compression decreases the incentives of individuals to become educated, it increases the incentives of firms to invest in training. As a result, the net effects of wage compression on the aggregate human capital level and GDP are ambiguous. Moreover, with wage compression, a skillbiased technological change may cause wage inequality to decrease. Keywords: Wage compression, training, education, inequality, institutions, skill-biased technological change. JEL: I21, J31, J5, O33.

URI:

http://hdl.handle.net/10398/7574

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cebr dp 2003-09.pdf (267.7Kb)

Make or buy of IT-enabled innovation

The influence of technological regimes and strategic postures

Mahnke, Volker; Overby, Mikkel Lucas; Özcan, Serden (København, 2004)

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IT-enabled innovations are of increasing importance for competitive success in most sectors today. This paper offers a novel theoretical and empirically illustrated explanation of why IT-outsourcing strategies differ between innovative first-movers, fast followers and late entrants. In particular, an analysis of three companies in the financial sector - Charles Schwab, Fidelity Investment, and Merrill Lynch - reveals that governance choices influence a company’s ap-propriable learning curve advantage to slow down or speed up adoption and imitation of IT-enabled innovation. Moreover, we discuss the implications of governance choices in techno-logical environments characterised by either accumulation or disruption. Keywords: IT-enabled innovation, outsourcing, technological regime, strategic posture, first-mover advantages, financial services, online brokerage

URI:

http://hdl.handle.net/10398/6488

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02-2004.pdf (878.3Kb)

Mutual adaptation and technological innovation

Sornn-Friese, Henrik (København, 1998)

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URI: http://hdl.handle.net/10398/7238

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wp98-11.pdf (66.98Kb)
Scale in technology and learning-by-doing in the windmill industry

Strøjer Madsen, Erik; Jensen, Camilla; Drud Hansen, Jørgen (Aarhus, 2002)

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URI: http://hdl.handle.net/10398/6616

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02-2_esm.pdf (545.0Kb)

Skill-Biased Technological Change in Denmark

A Disaggregate Perspective

Malchow-Møller, Nikolaj; Skaksen, Jan Rose (København, 2003)

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Skill-Biased Technological Change in Denmark: A Disaggregate Perspective* In this paper, we provide an industry-level analysis of skill-biased technological change (SBTC) in Denmark over the last two decades. The analysis shows that SBTC has varied considerably across industries, and traditionally large Danish industries have experienced relatively less SBTC. This may partly explain why wage inequality between skilled and less skilled has risen less in Denmark than in other countries. We also find that SBTC has been concentrated in already skill-intensive industries. This contains important information about future labour requirements, as the relative importance of these industries must be expected to grow, thereby reinforcing the shift in demand for skilled labour. JEL Classification: J24, J31, L6 Keywords: skill-biased technological change, Danish industries

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http://hdl.handle.net/10398/7549

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dp752.pdf (762.4Kb)

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