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Jacobs, B. and Nahuis, R. (2002). A general purpose technology explains the Solow paradox and wage inequality Economics Letters, 74(2):243--250.

  • Affiliated author
  • Publication year
    2002
  • Journal
    Economics Letters
View publication

We analyze the consequences of a general purpose technology (GPT) on output, productivity, and wages of skilled and unskilled workers. Our endogenous growth model matches three key empirical facts during the 1980s and 1990s: an increasing skill premium, a fall in the real wages of unskilled workers and a slowing down of economic growth after the introduction of a GPT. {\textcopyright} 2002 Elsevier Science B.V. All rights reserved.