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Full Details

Title: Small Firms, Contracting-out, Computers and Wage Inequality: Evidence from UK Manufacturing

Author(s): Jonathan Haskel

Publication Date: October 1996

Keyword(s): Computers, Skill Premia, Small Firms, UK and Wage Inequality

Programme Area(s): Human Resources

Abstract: What demand-side and institutional factors raised the skilled wage premium over the 1980s in UK manufacturing? Using a panel of 80 industries for 1980?89 we find that: (i) the average skill premium rose by around 13 percentage points; (ii) computer introduction explains around 50% of this rise; (iii) growth in small firms and in contracting-out together explain around 20%; and (iv) the fall in unionisation explains around 15%.

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Bibliographic Reference

Haskel, J. 1996. 'Small Firms, Contracting-out, Computers and Wage Inequality: Evidence from UK Manufacturing'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=1490