Working Paper Series, Swedish Institute for Social Research, Stockholm University
No 2/2005:
Capital-Skill Complementarity and Inequality in Sweden
Matthew J. Lindquist ()
Abstract: Income inequality increased in Sweden during the 1980’s
and 90’s as did the returns to higher education. The main conclusion of
this study is that increased income inequality between high and low skilled
workers is demand driven and is due to the presence of capital-skill
complementarity in production. Increased investments in new, more efficient
capital equipment, together with a slowdown in the growth rate of skilled
labor, have raised the ratio of effective capital inputs per skilled
worker, which, in turn, has increased the relative demand (and market
return) for skilled labor through the capital-skill complementarity
mechanism.
Keywords: capital-skill complementarity; inequality; relative wages; skill premium; university wage premium; (follow links to similar papers)
JEL-Codes: J31; (follow links to similar papers)
30 pages, February 8, 2005
Before downloading any of the electronic versions below
you should read our statement on
copyright.
Download GhostScript
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Full text versions of the paper:
WP05no2.pdf 
Download Statistics
Questions (including download problems) about the papers in this series should be directed to Lena Lindahl ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Programing by
Design by Joachim Ekebom
