hero working papers

The Declining Share of Raw Labor

Number: 129
Year: 1998
Author(s): Fernando Perera Tallo (Universidad de la Laguna, Tenerife)
This paper presents an endogenous growth model in which technological change increases the share of reproducible factors at the expense of the share of non-reproducible factors. This model may explain some empirical facts of the last two decades: i) the negative growth of uneducated workers wages in contrast with the positive growth in per capita output, ii) the reduction of the share of uneducated workers in favor of educated ones, iii) the increase of inequality in income distribution, iv) the slow down of growth. The model may also explain the stagnation that many developing countries suffer.