TY - CHAP
T1 - Skills, Computerization and Income Inequality in the Postwar U.S. Economy
AU - Wolff, Edward N.
PY - 2006
Y1 - 2006
N2 - Inequality in the distribution of family income in the U.S., which had remained virtually unchanged since the end of World War II until 1968, has increased sharply since then. In contrast, schooling and skill inequality has declined rather steadily over the postwar period. Another notable change over the past 30 years or so has been the widespread diffusion of computers. Using aggregate time-series data for the 1947-2000 period, I find that the largest effects on inequality come from office, computing and accounting equipment (OCA) investment, which accounted for about half of the rise in inequality between 1968 and 2000. The unionization rate is second in importance, and its decline over this period explains about 40 percent of the increase in inequality. The decline in the dispersion of schooling, on the other hand, plays almost no role in explaining the rise in inequality. On the basis of pooled time series, industry regressions for the 1970-2000 period, I also find that investment in OCA is positively related to changes in skill inequality, while changes in the unionization rate are negatively related.
AB - Inequality in the distribution of family income in the U.S., which had remained virtually unchanged since the end of World War II until 1968, has increased sharply since then. In contrast, schooling and skill inequality has declined rather steadily over the postwar period. Another notable change over the past 30 years or so has been the widespread diffusion of computers. Using aggregate time-series data for the 1947-2000 period, I find that the largest effects on inequality come from office, computing and accounting equipment (OCA) investment, which accounted for about half of the rise in inequality between 1968 and 2000. The unionization rate is second in importance, and its decline over this period explains about 40 percent of the increase in inequality. The decline in the dispersion of schooling, on the other hand, plays almost no role in explaining the rise in inequality. On the basis of pooled time series, industry regressions for the 1970-2000 period, I also find that investment in OCA is positively related to changes in skill inequality, while changes in the unionization rate are negatively related.
UR - http://www.scopus.com/inward/record.url?scp=33646541996&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=33646541996&partnerID=8YFLogxK
U2 - 10.1016/S1049-2585(06)13009-4
DO - 10.1016/S1049-2585(06)13009-4
M3 - Chapter
AN - SCOPUS:33646541996
SN - 0762313501
SN - 9780762313501
T3 - Research on Economic Inequality
SP - 251
EP - 295
BT - Dynamics of Inequality and Poverty
A2 - Creedy, John
A2 - Kalb, Guyonne
ER -