Capital accumulation, trade liberalization, and rising wage inequality: the case of Argentina

Autores
Acosta, Pablo; Gasparini, Leonardo
Año de publicación
2004
Idioma
inglés
Tipo de recurso
documento de trabajo
Estado
versión enviada
Descripción
Capital accumulation can modify the relative productivity between skilled and unskilled workers, thus leading to changes in the wage structure. In particular, if capital goods are relatively more complementary to skilled workers in the production function (skill-biased technologies), a positive correlation between investment in physical capital and the wage premium would be expected. In this paper we present evidence for this hypothesis by taking advantage of the variability in wage premia and capital investment across industries in the Argentine manufacturing sector. We conclude that the wage premium for workers with complete college education increased more in those industries with higher investment in machinery and equipment. As in Galiani and Sanguinetti (2003, in this journal), the wage premium also grew more in those sectors which faced strong import competition, although this effect is empirically less relevant than the capital accumulation effect.
Trabajo publicado en Economic Development and Cultural Change 55 (4), July, 2007.
Centro de Estudios Distributivos, Laborales y Sociales (CEDLAS)
Materia
Economía
wage inequality; capital accumulation; trade liberalization
Argentina
JEL: J31; F16; O33
Acumulación de capital
Diferencias salariales
Incentivos salariales
Nivel de accesibilidad
acceso abierto
Condiciones de uso
http://creativecommons.org/licenses/by/3.0/
Repositorio
SEDICI (UNLP)
Institución
Universidad Nacional de La Plata
OAI Identificador
oai:sedici.unlp.edu.ar:10915/3535
Acceder
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network_name_str SEDICI (UNLP)
spelling Capital accumulation, trade liberalization, and rising wage inequality: the case of ArgentinaAcosta, PabloGasparini, LeonardoEconomíawage inequality; capital accumulation; trade liberalizationArgentinaJEL: J31; F16; O33Acumulación de capitalDiferencias salarialesIncentivos salarialesCapital accumulation can modify the relative productivity between skilled and unskilled workers, thus leading to changes in the wage structure. In particular, if capital goods are relatively more complementary to skilled workers in the production function (skill-biased technologies), a positive correlation between investment in physical capital and the wage premium would be expected. In this paper we present evidence for this hypothesis by taking advantage of the variability in wage premia and capital investment across industries in the Argentine manufacturing sector. We conclude that the wage premium for workers with complete college education increased more in those industries with higher investment in machinery and equipment. As in Galiani and Sanguinetti (2003, in this journal), the wage premium also grew more in those sectors which faced strong import competition, although this effect is empirically less relevant than the capital accumulation effect.Trabajo publicado en <i>Economic Development and Cultural Change</i> 55 (4), July, 2007.Centro de Estudios Distributivos, Laborales y Sociales (CEDLAS)2004-01info:eu-repo/semantics/workingPaperinfo:eu-repo/semantics/submittedVersionDocumento de trabajohttp://purl.org/coar/resource_type/c_8042info:ar-repo/semantics/documentoDeTrabajoapplication/pdfhttp://sedici.unlp.edu.ar/handle/10915/3535enginfo:eu-repo/semantics/altIdentifier/url/http://cedlas.econo.unlp.edu.ar/download.php?file=archivos_upload/doc_cedlas5.pdfinfo:eu-repo/semantics/openAccesshttp://creativecommons.org/licenses/by/3.0/Creative Commons Attribution 3.0 Unported (CC BY 3.0)reponame:SEDICI (UNLP)instname:Universidad Nacional de La Platainstacron:UNLP2025-09-29T10:49:12Zoai:sedici.unlp.edu.ar:10915/3535Institucionalhttp://sedici.unlp.edu.ar/Universidad públicaNo correspondehttp://sedici.unlp.edu.ar/oai/snrdalira@sedici.unlp.edu.arArgentinaNo correspondeNo correspondeNo correspondeopendoar:13292025-09-29 10:49:12.904SEDICI (UNLP) - Universidad Nacional de La Platafalse
dc.title.none.fl_str_mv Capital accumulation, trade liberalization, and rising wage inequality: the case of Argentina
title Capital accumulation, trade liberalization, and rising wage inequality: the case of Argentina
spellingShingle Capital accumulation, trade liberalization, and rising wage inequality: the case of Argentina
Acosta, Pablo
Economía
wage inequality; capital accumulation; trade liberalization
Argentina
JEL: J31; F16; O33
Acumulación de capital
Diferencias salariales
Incentivos salariales
title_short Capital accumulation, trade liberalization, and rising wage inequality: the case of Argentina
title_full Capital accumulation, trade liberalization, and rising wage inequality: the case of Argentina
title_fullStr Capital accumulation, trade liberalization, and rising wage inequality: the case of Argentina
title_full_unstemmed Capital accumulation, trade liberalization, and rising wage inequality: the case of Argentina
title_sort Capital accumulation, trade liberalization, and rising wage inequality: the case of Argentina
dc.creator.none.fl_str_mv Acosta, Pablo
Gasparini, Leonardo
author Acosta, Pablo
author_facet Acosta, Pablo
Gasparini, Leonardo
author_role author
author2 Gasparini, Leonardo
author2_role author
dc.subject.none.fl_str_mv Economía
wage inequality; capital accumulation; trade liberalization
Argentina
JEL: J31; F16; O33
Acumulación de capital
Diferencias salariales
Incentivos salariales
topic Economía
wage inequality; capital accumulation; trade liberalization
Argentina
JEL: J31; F16; O33
Acumulación de capital
Diferencias salariales
Incentivos salariales
dc.description.none.fl_txt_mv Capital accumulation can modify the relative productivity between skilled and unskilled workers, thus leading to changes in the wage structure. In particular, if capital goods are relatively more complementary to skilled workers in the production function (skill-biased technologies), a positive correlation between investment in physical capital and the wage premium would be expected. In this paper we present evidence for this hypothesis by taking advantage of the variability in wage premia and capital investment across industries in the Argentine manufacturing sector. We conclude that the wage premium for workers with complete college education increased more in those industries with higher investment in machinery and equipment. As in Galiani and Sanguinetti (2003, in this journal), the wage premium also grew more in those sectors which faced strong import competition, although this effect is empirically less relevant than the capital accumulation effect.
Trabajo publicado en <i>Economic Development and Cultural Change</i> 55 (4), July, 2007.
Centro de Estudios Distributivos, Laborales y Sociales (CEDLAS)
description Capital accumulation can modify the relative productivity between skilled and unskilled workers, thus leading to changes in the wage structure. In particular, if capital goods are relatively more complementary to skilled workers in the production function (skill-biased technologies), a positive correlation between investment in physical capital and the wage premium would be expected. In this paper we present evidence for this hypothesis by taking advantage of the variability in wage premia and capital investment across industries in the Argentine manufacturing sector. We conclude that the wage premium for workers with complete college education increased more in those industries with higher investment in machinery and equipment. As in Galiani and Sanguinetti (2003, in this journal), the wage premium also grew more in those sectors which faced strong import competition, although this effect is empirically less relevant than the capital accumulation effect.
publishDate 2004
dc.date.none.fl_str_mv 2004-01
dc.type.none.fl_str_mv info:eu-repo/semantics/workingPaper
info:eu-repo/semantics/submittedVersion
Documento de trabajo
http://purl.org/coar/resource_type/c_8042
info:ar-repo/semantics/documentoDeTrabajo
format workingPaper
status_str submittedVersion
dc.identifier.none.fl_str_mv http://sedici.unlp.edu.ar/handle/10915/3535
url http://sedici.unlp.edu.ar/handle/10915/3535
dc.language.none.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv info:eu-repo/semantics/altIdentifier/url/http://cedlas.econo.unlp.edu.ar/download.php?file=archivos_upload/doc_cedlas5.pdf
dc.rights.none.fl_str_mv info:eu-repo/semantics/openAccess
http://creativecommons.org/licenses/by/3.0/
Creative Commons Attribution 3.0 Unported (CC BY 3.0)
eu_rights_str_mv openAccess
rights_invalid_str_mv http://creativecommons.org/licenses/by/3.0/
Creative Commons Attribution 3.0 Unported (CC BY 3.0)
dc.format.none.fl_str_mv application/pdf
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instname_str Universidad Nacional de La Plata
instacron_str UNLP
institution UNLP
repository.name.fl_str_mv SEDICI (UNLP) - Universidad Nacional de La Plata
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