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Non-routine tasks, restructuring of firms, and wage inequality within and between skill-groups


Egger, H; Grossmann, V (2005). Non-routine tasks, restructuring of firms, and wage inequality within and between skill-groups. Journal of Economics, 86(3):197-228.

Abstract

This paper argues that endogenous restructuring processes within firms towards analytical and interactive non-routine tasks (like problem-solving and organizational activities, respectively), triggered by advances in information and communication technologies (ICT) and rising supply of educated workers, are associated with an increase of wage inequality within education groups. We show that this may be accompanied by a decline or stagnation of between-group wage dispersion. The mechanisms proposed in this research are not only consistent with the evolution of the distribution of wages in advanced countries, but also with the evolution of task composition in firms and a frequently confirmed complementarity between skill-upgrading, new technologies and knowledge-based work organization.

Abstract

This paper argues that endogenous restructuring processes within firms towards analytical and interactive non-routine tasks (like problem-solving and organizational activities, respectively), triggered by advances in information and communication technologies (ICT) and rising supply of educated workers, are associated with an increase of wage inequality within education groups. We show that this may be accompanied by a decline or stagnation of between-group wage dispersion. The mechanisms proposed in this research are not only consistent with the evolution of the distribution of wages in advanced countries, but also with the evolution of task composition in firms and a frequently confirmed complementarity between skill-upgrading, new technologies and knowledge-based work organization.

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Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Economics
Dewey Decimal Classification:330 Economics
Language:English
Date:2005
Deposited On:30 Apr 2008 09:06
Last Modified:05 Apr 2016 12:23
Publisher:Springer
ISSN:0931-8658
Additional Information:The original publication is available at www.springerlink.com
Publisher DOI:https://doi.org/10.1007/s00712-005-0151-9

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