Activity

[...] the decline in unionisation is the result of the bias in technical change towards skilled workers. Technological change biased towards skilled workers undermines the coalition between them and unskilled workers that provides the basis for union bargaining power, and the consequent decline in …

In the case of globalisation, what lies behind is the standard international trade model (usually referred to as the Heckscher–Ohlin model after the two Swedish economists Eli Heckscher and Bertil Ohlin), according to which the classes of workers, skilled and unskilled, are employed in two perfectly competitive economies, each with two sectors of production.

• globalisation
• technological change (information and communications technology)
• growth of financial services
• changing pay norms
• reduced role of trade unions
• scaling back of the redistributive tax-and-transfer policy

[...] we risk creating the impression that inequality is rising …