The Changing Distribution of Income: Evidence and Explanations

摘要: This article is concerned with the economics of distribution income, emphasizing aspects which have been missing from recent literature. It begins factor shares and rise in real interest rates. These are important their own right relation to determination wage differentials. The paper questions conventional wisdom locates rising inequality unemployment solely a shift demand away unskilled workers. explanation too partial its approach, hard reconcile empirical evidence, ignores labour market institutions role social norms. In seeking explain experience different countries, we need look not just at wages but also capital market, should be limited simple competitive supply-and-demand story.