Technological Change, Skill Demand, and Wage Inequality: Evidence from Indonesia

By Jong‐Wha Lee, Dainn Wie. 2015

117 citations recorded by the source corpus.

This study provides empirical evidence of the impact that technological progress has on wage inequality in Indonesia. The share of educated workers and their skill premiums have recently increased. A supply–demand analysis, using labor force survey data during 1990–2009, shows that both the between- and within-industry shifts of labor demand that favored skilled workers contributed to the widening wage inequality since the early 2000s. Evidence from firm-level data in the manufacturing sector indicates that the diffusion of foreign technologies through imports and foreign direct investment caused demand to shift toward more skilled labor and increased wage inequality.

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/37c866ffaf01e2ffea4c0d456503abba3121e10d

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

Citations in the corpus

Human capital and income inequality* (2018, background): “…through its impact on the adoption of new skill-intensive technologies (Berman, Bound, and Machin 1998; Bourguignon, Ferreira, and Lustig 2004; Lee and Wie 2015).4 We expect inflation (measured using changes in the consumer price index over fiveyear intervals) to worsen income distribution.”