Technical progress and real wage stagnation: theory and evidence from the U.S. steel industry
Abstract:Over the past twenty years real wages have stagnated despite substantial technical progress. This runs contrary to the widespread belief that technological change increases real wages. This paper presents a theoretical model showing that technical progress could reduce wages. This hypothesis is then tested using data from the U.S. steel industry.
Document Type: Research Article
Publication date: 2004-01-01