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Wiley InterScience | |||||||||||||||||
  Bulletin of Economic ResearchVolume 59 Issue 1, Pages 1 - 24 Published Online: 19 Jan 2007 Journal compilation © 2010 Blackwell Publishing Ltd and the Board of Trustees of the Bulletin of Economic Research
Abstract | References | Full Text: HTML, PDF (Size: 132K) | Related Articles | Citation Tracking  SHORT- AND LONG-RUN DECOMPOSITIONS OF UK WAGE INEQUALITY CHANGES This paper forms part of a project on Globalization and Social Exclusion supported by the EU, executed at the University of Warwick. We are grateful to Lisandro Abrego, Carlo Perroni, Paul Brenton, Matthias Lücke, Ana Rutte Cardoso, Ray Riezman, David Collie, Geoff Reed and Ben Zissimos for conversations and suggestions, as well as to two anonymous referees. Copyright 2007 The Authors. Journal compilation © 2007 Blackwell Publishing Ltd and the Board of Trustees of the Bulletin of Economic Research. KEYWORDS general equilibrium • inequality • technology • trade KEYWORDS F16 • J31 • C68 ABSTRACT
This paper focuses on the decomposition of observed increases in UK wage inequality since 1979 into the component factors of competition from low-wage imports and technological change. Building on recent work by Abrego and Whalley, we argue that the length of production run and degree of fixity of factors is crucial in such analyses. If the response of labour markets to date is a short-run response, in which factors and output have not adjusted fully, then analysis of the causes of increased inequality is substantially altered relative to a long-run factors mobile world. | 
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